Princes Tuna ups profit as UK sales decline
After the financial year end closes down, Princes has taken measures likely to increase its turnover in continental Europe even more, where in July last year, Princes Tuna was launched in France for the first time, with the aim to have annual sales of €30 million (approx Rs 11.3 billion) within three years. (Image: origin.ih.
Profits on flat turnover are up for Mitsubishi-owned tuna and food group Princes Tuna for the year closing March 31, 2014. But UK sales, expected to contribute around a third of its turnover, have decreased.
Turnover for the year amounted to £1.61 billion (approx. Rs 78.13 billion), according to Princes Tuna. However, sales in the UK took a down turn of 1.34% year-on-year (y-o-y) to reach £1.25 billion, i.e. around Rs 60.66 billion.
Sales on other European markets were up by 11.14% y-o-y, to reach £279.76 million (approx. Rs 13.5 billion), while those to the rest of the world amounted to £86.61million (approx Rs 4.2 billion) because of a decrease by 9.98% y-o-y.
Notwithstanding the flat sales, gross profit for amounted to £277.59 million (approx Rs 13.4 billion), with an increase in gross profit of 4.62% y-o-y. Pre-tax profit went up by 13.08% y-o-y, to reach £65.18million (approx Rs 2.0 billion).
The turnover of Princes in continental Europe will probably increase even more given the measures taken by the company after the financial year end closedown. The brand was launched in France in July last year with a starting range of five tuna products. The objective is clear cut: that within three years, annual sales reach €30 million (approx. Rs 11.3 billion).
The Mitsubishi group is already established in France in private labels – which hold 50% of the French tuna market – with earnings of €30million (approx Rs 11.3 billion) for 2013.
Princes aims to stand out on the market by focusing
on yellowfin tuna and double cleaning. This method, used to remove the subcutaneous tissue, is also used by fellow competitor Bolton – 14.4% of the French market.
In November 2014, Princes announced its merger with Mauritius’ second largest tuna processor, Thon des Mascareignes (TDM).
Princes Tuna (Mauritius) will operate two processing sites. Yearly sales of $400million (approx Rs 12.8 billion) are expected, according to the company. “All employees will transfer to the new operation on completion” of the merger process in a few months, Princes explained.
Princes Tuna (Mauritius), majority owned by Princes, will also include Thon des Mascareignes’ existing owners (Ireland Blyth Limited, State Investment Corporation and others).
TDM was founded in 2005. Its tuna processing site exports loins to canneries and produces pouches for foodservice customers.