According to Dow Jones, Thai Union Frozen Products PCL (H.TUF), the world's second largest tuna producer, Monday said it expects net profit in 2003 to rise 20% from the previous year due to higher sales.
Thai Union President Thiraphong Chansiri said sales should rise 15% in 2003 as a result of stronger sales of tuna products and higher sales of U.S. canned tuna unit, Chicken of the Sea. Thirapong said shrimp exports to the European Union are also expected to recover after the E.U. eased stringent inspection procedures for shrimp products out of Thailand.
In 2002, Thai Union posted a net profit 1.55 billion baht (USD 36 million) and sales of THB34.24 billion (USD 797 million). "Our exports aren't affected by the (Iraq) war as tuna products are staple foods in Western countries," Thiraphong added.
Last year, the U.S. accounted for 55% of Thai Union Frozen's total sales, while the European market contributed 8%. Exports to the Middle East made up only 3% of total sales.
"What I can see as a negative impact is higher shipping cost, which is rising around 2%-3% in the wake of the Iraq war," Thiraphong said. "But our company is benefiting from growing demand from all over the world as production costs have recently dropped significantly," he said, "Tuna price has now fallen to just above $600 a metric ton." In 2002, tuna averaged $731 a ton.
On the domestic front, Thiraphong said sales of T-Holding Co. Ltd., the company's seafood snack unit, is likely to grow by 40% this year from THB435 million (USD 10 million) in 2002, while sales of shrimp feed products will likely jump by 50% from THB1.2 billion (USD 28 million) last year.