Aquaculture for all

Thai Union Frozen Products sees revenue rise

THAILAND - Thai Union Frozen Products PLC (TUF) is more upbeat about its profitability this year after having posted a 6% drop in net profit last year due to higher interest expenses and non-recurring merger and acquisition expenses.

''We admit 2006 was one of the most troubled years we've gone through due to loads of negative factors. The baht shot up by up to 13% against the US dollar. Fuel prices and interest rates rose steadily, while tuna prices surged to US$910 per tonne from $850 a year earlier and wages doubled,'' president Thiraphong Chansiri said yesterday.

According to Mr Thiraphong, the company could not raise product prices much to cover the higher costs last year for fear of losing out to its rivals, particularly China, Vietnam, India and Bangladesh, whose currencies rose by only 3% against the dollar.

TUF recorded net profit of 1.96 billion baht, down from 2.08 billion a year earlier. This came despite a 3% rise in sales to 55.03 billion baht. Sales in dollar terms grew 10% to $1.45 billion.

The sales growth was driven particularly by pet food, shrimp feed and shrimp exports.

Source: Bangkok Post

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