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TUF, CPF report surge in first-half net profits

Thai Union Frozen Products (TUF) and Charoen Pokphand Foods (CPF) have reported net-profit growth of more than 100 per cent in the first half of this year compared with the first six months of 2013 on the back of strong exports and a weaker baht.

TUF announced net profit of Bt2.47 billion, up 139 per cent from the first half of last year. Gross profit margin expanded to 15.5 per cent from 11.7 per cent, driven by recoveries of its tuna, frozen-shrimp and pet-food businesses.

Based on this strong performance, TUF's board of directors approved a dividend of Bt1.2 per share, with an ex-dividend date of August 25 and payment date of September 10.

Meanwhile, CPF reported net profit of Bt5.59 billion in the first half, an increase of 110 per cent from the same period of 2013. The company saw recoveries in its operations both domestically and overseas, together with higher gross profit margins.

CPF also announced an interim dividend payment of Bt0.30 per share.

TUF's performance was particularly strong in the second quarter, with sales of Bt30.25 billion, a 7.6-per-cent increase on Bt28.12 billion in the same period last year. In the first half, the group's sales contributed Bt58.207 billion, up 10.7 per cent compared with the same period last year, but in US dollar terms, sales inched up by only 2.1 per cent.

TUF's six strategic categories for the first half of the year remained relatively steady. However, they continued to offer reasonable growth, with tuna business contributing 49 per cent of total revenue, shrimp and related business 23 per cent, pet food 7 per cent, sardines and mackerel 6 per cent, salmon 4 per cent and value-added and other products 11 per cent.

TUF's revenue breakdown by market was as follows: the United States contributed 41 per cent; Europe 33 per cent; Japan 7 per cent; domestic 7 per cent; Africa 3 per cent; Australia 3 per cent; Asia excluding Japan 3 per cent; Middle East 2 per cent; Canada 1 per cent; and South America 1 per cent.

The US market showed the strongest growth at more than 20 per cent year on year, followed by Europe with more than 17 per cent. These growth figures were due to stronger sales of frozen shrimp in the US and robust operating results from the firm's European operations, TUF president and chief executive officer Thiraphong Chansiri said.

Meanwhile, CPF reported sales revenue of Bt203.95 billion for the first half, an increase of 13 per cent from the same period last year and in line with its target. Sales from Thailand operations increased 8 per cent and from international operations by 16 per cent.

Sales increased mainly because of a recovery of livestock business, especially in Thailand and Vietnam, which were affected by oversupplies last year. An improvement of CPF's aquatic business overseas also helped boost earnings, said Adirek Sripratak, president and CEO. CPF expects to see an increase in shrimp farming in the remaining months of the year.

Meanwhile, CPF has announced the disposal of a 25-per-cent investment in ordinary shares of CPP, a listed company on the Hong Kong Stock Exchange.


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