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Thai Union Group Plc (TU), global leader in tuna production, increased its sales guidance to show 10-12% growth year-to-year, up from previous forecast of 7-8%.
TU said that the it has witnessed a stronger growth in the first half of 2022 due to higher demand, selling prices and favorable foreign exchange (FX) especially in ambient seafood sales (11% increase YoY) and Petcare and value added (42% increase YoY).
The gross profit margin, according to Ratinan Wongwatcharanon, Head of Investor Relations for TU, is expected to be at 17.5.-18% and selling, general and administrative expenses (SG&A) to be at 12-12.5%.
Ratinan, who was talking to investors during the ‘Opportunity Day’ at the Stock Exchange of Thailand’s (SET) said that the company was also looking to address Red Lobster, a loss making venture of TU in the United States.
During the 2nd quarter of the year, Red Lobster accounted for about 383 million Baht in losses. TU cites US inflation and market shortages as the primary reasons but expects the brand to begin turning a profit in 2023 through brand revitalization, improving operations, and stronger marketing.
TU states that it remains committed to the brand.
TU is also looking to list its pet care business i-Tail Corporation Plc (ITC). ITC is now filing for public listing in the SET. As of 5 July 2022, it is currently being processed by the Securities and Exchange Commission (SEC). ITC is expected to undertake an initial public offering within this year.
To view the presentation, please visit: https://www.youtube.com/watch?v=ouRQ-GxJLP4.
To read report on the earnings of TU (CLICK) – https://www.thaienquirer.com/42520/thai-union-q2-beats-market-expectations-by-20-despite-30-drop-in-profits/