Red Lobster losses, foreign exchange impacts drag down Thai Union’s net profit in Q4

Losses from its Red Lobster affiliate hampered the net profit of Bangkok, Thailand-based Thai Union in Q4 2022, despite the company achieving sales growth, according to its latest results report.

The company reported a net profit of THB 1.238 billion (USD 35.9 million, EUR 33.7 million) for the period spanning October to December 2022, falling 35.9 percent year-on-year. Its net profit for the full year also dropped 10.9 percent year-on-year to THB 7.138 billion (USD 207.3 million, EUR 194.1 million).

Thai Union mainly attributed the lower net profits for both Q4 and the entire 2022 to higher losses from Red Lobster. Losses from Red Lobster in Q4 2022 rose to THB 456 million (USD 13.2 million, EUR 12.4 million), much higher than the THB 256 million (USD 7.4 million, EUR 6.9 million) loss in the same period of 2021. Red Lobster’s preferred shares interest in the fourth quarter also decreased to zero, a decline from THB 319 million (USD 9.3 million, EUR 8.7 million) over Q4 2021.

Thai Union said the lower preferred shares interest from Red Lobster is the main reason behind the company’s lower other income of THB 253 million (USD 7.3 million, EUR 6.9 million) in the quarter.  That was also lower than the THB 546 million (USD 15.9 million, EUR 14.8 million) the company earned from other income in the same period in 2021. The U.S.-based restaurant chain’s preferred shares interest for all of 2022 was THB 18 million (USD 520,000, EUR 490,000), down sharply from THB 1.216 billion (USD 35.3 million, EUR 33.1 million) in Q4 2021.

In addition to losses related to Red Lobster, Thai Union’s net profit in the fourth quarter was also affected by the “extremely volatile” exchange rate between USD and THB. The company’s foreign exchange losses in Q4 2022were THB 468 million (USD 13.6 million, EUR 12.7 million). Thatnegative contribution to Thai Union’s performance contrasts the financial exchange gains of THB 151 million (USD 4.4 million, EUR 4.1 million) in the same quarter of 2021.

In contrast to the lower net profit and poor performance of Red Lobster, the company’s sales value in Q4 2022 increased 2.9 percent year-on-year to THB 39.613 billion (USD 1.15 billion, EUR 1.08 billion).

Ambient seafood sales …