Thai Union Feedmill reported an increase in sales of 14.1% in 2021 boosted by the recovery of consumption of fish and shrimp but profit margins are still low due to the rising raw material prices.
Sales reached BHT 4,773.1 million (USD 147.5 million) in 2021 with an increase in shrimp feed sales of 14.1% and 8.9% of fish feed. The overall 2021 net profit of the company is BHT 211.5 million (USD 6.5 million), a decrease of 48.6% from the previous year.
Plans to double revenues
The company recently unveiled that it aims to double its revenue in the next five years (2022-2026) through the improvement of production efficiency, use economy of scale and increase the high-margin product portfolio, as the company continues to expand its business domestically and internationally.
“In line with the growth of the aquafeed business, the company has plans to develop a variety of animal feed products focused on specific customer groups and grow from the business expansion to foreign countries with high growth potential in the aquaculture industry, which is expected to help drive the proportion of foreign income to 20-25% from the current income proportion of 3%,” said Bunluesak Sorajjakit, chief executive officer of Thai Union Feedmill PCL.
As for 2022, the company plans to increase revenues with increased sales of animal feed in Thailand and increased revenues from its facilities in Indonesia and Pakistan.
PT Thai Union Kharisma Lestari Co., Ltd. (TUKL) produces aquafeeds in Indonesia with a total production capacity of 36,000 tons of shrimp feed per year. The company plans to produce 10,000-12,000 tons in 2022 and reach full capacity in 2024. TUKL also plans to expand further into the fish feed production and distribution business in Indonesia.
AMG-Thai Union Feedmill (Private) Limited (AMG-TFM) operates the aquafeed business in Pakistan. The company plans to increase the production capacity to 15,000 tons per year.