TU Posts Record Earnings in 2Q from Strong Seafood Sales, Offering a Dividend of ฿0.45

Thai Union Group Public Company Limited (TU) has announced its 2Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

TU reported an all-time high net profit in 2Q21, up 37% YoY, of 2,343 million baht, boosted by record operating profit from strong core three businesses, margin expansion, and a turnaround of Red Lobster at much lower loss. Adjusted net profit marked at  2,448 million baht, up 42.6% YoY. The one-off item was a 105 million baht goodwill impairment in TMAC. 

2Q21 sales revenue growth was exceptional at 8.6% YoY to 35,883 million baht.  This was mainly driven by a significant rebound of frozen and chilled seafood sales (+28.7% YoY) and strong PetCare and value-added business sales (+12.5% YoY). The ambient seafood business saw a 6.8% YoY sales drop in 2Q21. Compared to 2Q19 pre-COVID level, all three core businesses grew firmly in 2Q21 at 11.4% growth.  

Gross profit marked a new record at 6,805 million baht in 2Q21, up 12.9% from 2Q20 and 26.9% from 2Q19 pre-COVID level. TU delivered a consistent, high gross margin at 19.0%, up 82bps YoY. The margin sustained at a high level, thanks to the recovery of frozen and chilled seafood business, continued strong demand in the PetCare and value-added business, and a high margin in the ambient seafood business.

With robust net profit, net D/E ratio remained healthy at 0.98x, TU announced 1H21 interim dividend of 0.45 baht per share. Ex-Dividend (XD) Date is on August 20, 2021. Dividend will be paid on September 7, 2021.