Thai Union Group on Tuesday reported a 1.6-per-cent rise in consolidated sales for last year, hitting a record Bt136.53 billion. Gross profit was Bt18.14 billion, while the listed company’s gross profit margin stood at 13.3 per cent, compared to 14.8 per cent for the prior financial year.
High tuna prices contributed to the weaker margin, which was partly offset by prudent foreign-exchange management and stringent cost controls, the company said.
The 2017 selling, general and administration to sales ratio came in at 9.8 per cent, below the full-year target of 10 per cent.
As a result, net profit surged 14.6 per cent to a record Bt6.02 billion.
Thai Union announced a final dividend of Bt0.34 per share, making a 2017 full-year dividend of Bt0.66 per share, representing 5-per-cent dividend-payout growth from 2016 “despite strong operational headwinds”.
Last year, sales in North America continued to play an important role in the company’s revenue, accounting for 40 per cent of total sales, while Europe contributed 32 per cent.
The Thai market grew to 10 per cent of overall sales, while Japan contributed 6 per cent.
The sales contribution from major markets marginally shifted in favour of domestic and emerging markets partly due to strong penetration efforts in emerging markets, particularly China.
“Despite market volatility and higher raw material prices, our profitability remained resilient in 2017,” chief executive officer Thiraphong Chansiri said.
“Raw material price pressures are relaxing as tuna prices started to decline since the fourth quarter of 2017,” he added.