Thai Union Achieves Unprecedented Sales in 2022, Fueled by Expansion in PetCare and Shelf-Stable Seafood Segments

In 2022, Thai Union Group PCL reported a significant increase in its annual sales, reaching THB 155.6 billion, a 10.3% rise from the previous year. The company's gross profit also saw an increase, rising by 5.8% to THB 27.2 billion. Additionally, the net-debt-to-equity ratio saw a substantial improvement, being reduced by half to 0.54x. Shareholders were rewarded with a yearly dividend of THB 0.84 per share. On February 20, 2023, in Bangkok, Thai Union Group PCL disclosed its financial achievements for the year 2022, highlighting a robust growth in revenue, particularly from its PetCare and ambient seafood divisions. This growth is attributed to the continued consumer confidence in the company's wide array of healthy and nutritious offerings. The final quarter of 2022 alone saw a 2.9% increase in sales to THB 39.6 billion and a 20.6% increase in quarterly operating profit to THB 2.4 billion. Despite a 10.9% decrease in net profit to THB 7.1 billion for the year, the company managed to distribute a total annual dividend of THB 0.84 per share, maintaining an attractive yield of 5.3%. The ambient seafood sector experienced a 12.8% growth in 2022, driven by higher selling prices and sustained demand, especially in Asia and the U.S., bolstered by the introduction of innovative products. The PetCare segment also saw significant growth, with a 48.0% increase in sales to THB 21.7 billion, thanks to strong demand and increased selling prices. CEO Thiraphong Chansiri remarked on the company's resilience amidst global economic challenges, such as inflation and currency volatility, and its ability to achieve record sales. He emphasized the ongoing focus on core businesses while expanding the product portfolio to attract new customers in Asia, Europe, and North America. The company is also innovating in ingredients, supplements, and alternative proteins to fuel future growth. Ambient seafood was the leading revenue generator in 2022, contributing to 43% of total sales, followed by frozen and chilled seafood at 36%, PetCare at 14% (up from 10% in 2021), and other value-added businesses at 7%. The PetCare division's growth was highlighted by the successful IPO of the i-Tail Corporation Public Company Limited (ITC) on the Stock Exchange of Thailand, marking a significant milestone in Thai Union's history and contributing to the improvement of the company's net-debt-to-equity ratio to 0.54x. Geographically, sales were predominantly in the U.S. and Canada, making up 44% of total revenue, with Europe contributing 26%, Thailand 11%, and other regions 19%. In 2022, Thai Union invested CAD 10 million in Mara Renewables Corporation, aiming to bolster its growth through strategic investments. Thai Union's commitment to sustainability was recognized with its ninth consecutive listing on the Dow Jones Sustainability Indices and a top ranking in the food products industry. The company's partnership with the Sustainable Fisheries Partnership aims to enhance supply chain transparency, aligning with its "Healthy Living, Healthy Oceans" commitment. Looking ahead to 2023, CEO Chansiri anticipates inflation to remain a challenge but remains optimistic about achieving a 5-6% sales growth and plans to increase capital expenditure to THB 6-6.5 billion, underscoring the company's commitment to long-term growth and sustainability.