Thai Union Feedmill Lists (SET: TFM), aims to lead the aquaculture and commercial animal feed industry

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BANGKOK, November 1, 2021 – (ACN Newswire) – – Thai Union Feedmill PCL (SET: TFM), an aquaculture and commercial animal feed manufacturer and distributor, is confident in the positive response from investors following the company’s listing on the Thailand Stock Exchange (SET) today. Determined to be the leader in the aquaculture and commercial animal feed industry, TFM aims to expand into overseas markets through cooperative agreements, joint ventures with business partners and direct exports to support the food security of asia future.

Bunluesak Sorajjakit, CEO of TFM, said the company, which started its food business under the symbol “TFM”, has more than 20 years of industry experience and has accumulated know-how. which has led to innovations in production processes. The Company has become a leader in the production and distribution of feed for aquaculture and commercial animals in Thailand, offering quality and widely known branded products. Sorajjakit is confident that TFM’s IPO will generate widespread interest among investors.

Following the company’s listing on SET, TFM is prepared for continued sustainable growth and determined to assume the leadership role in the aquaculture and commercial animal feed industry. Between 2021 and 2023, he plans to spend the proceeds from the sale of shares (1,177.4 million baht) in the following activities:

I. Develop the production and distribution of feed for aquaculture through IndonesiaTUKL subsidiary by adding two production lines, which will increase the capacity by 36,000 tons per year, requiring an investment of no more than 250 million baht by 2023;

ii. Repay loans between 250-350 million baht through March 2022 reduce the debt ratio (D / E) to less than 1 time (x), after the IPO; and

iii. Use the rest as working capital.

In addition, as a policy, TFM intends to pay dividends twice a year, amounting to not less than 50 percent of net profit according to the consolidated financial statements after reduction of all categories of reserves in accordance with company rules and legal requirements.

The CEO of TFM adds that the Company is determined to expand its operations to overseas markets with appropriate business models deemed beneficial. These are:

I. Technical support to the Indian partner

A technical cooperation agreement with Avanti Feeds Limited (AVANTI), india major producer of shrimp feed, allows it to use TFM’s trade name and feed formulas to produce and sell shrimp feed in India;

II. JV abroad with partners

I. TFM has partnered with strategic partners to train PT Thai Union Karisma Lestari Co., Ltd. (TUKL), a subsidiary for the production and distribution of aquaculture feed in Indonesia. The two strategic partners are PT MSK, a major producer of frozen seafood in Indonesia, and AVANTI. TFM, PT MSK and AVANTI respectively hold 65%, 25% and 10% of the paid-up capital of TUKL.

ii. TFM has formed a joint venture AMG-Thai Union Feedmill (Private) Limited (AMG-TFM) with a strategic partner in Pakistan. Pakistani partner AMG is the country’s main aquaculture feed producer. AMG owns 49 percent of the shares of the new company while TFM owns 51 percent from June 30, 2021. AMG-TFM produces 7,000 tonnes of fish feed per year and plans to increase its capacity to 15,000 tonnes per year by 2021. The joint venture has started commercial operations and has recorded revenue with net profit since 2nd quarter 2021;

III. Direct exports to various foreign countries including Malaysia, Maldives, Burma, Pakistan and Sri Lanka.

IV. Expanding the domestic market, TFM plans to develop new business and continues its efforts to maintain its competitiveness as an industry leader. The Company is the first Thailand to produce and distribute pelletized sea bass feed as a replacement for the use of fresh prey, and also a major producer and distributor of giant sea bass feed. The Company has also launched products under its “Fighting” brand through a marketing campaign aimed at expanding its customer base into more diverse segments as demand for fish feed is on the rise. The Company aims to promote feeds for other species of fish and has made research and development efforts on feeds for other aquatic species, such as crab and gourami. TFM envisions a growth opportunity in the commercial animal feed sector that should help support food security in Asia.

Sithi pitcher-amnuay, general manager of Bualuang Securities, the financial advisor and underwriter of the company’s IPO, says TFM, with more than 20 years of experience and expertise, highly qualified staff, a strong capital base and access to innovations, succeeds to improve its competitiveness and even to raise the standards of the industry as a whole. TFM is able to produce high quality products with consistency and high performance, contributing to the healthy growth of aquatic species. TFM can also produce a range of products covering all the needs of the aquaculture life cycle at competitive prices. TFM’s products and brands have earned the trust of customers and satisfied their various demands over a long period of time.

For these reasons, TFM is in a privileged position to pursue growth opportunities in local and foreign markets through the expansion of production of aquatic and other animal feed. Other channels for overseas expansion include entering into cooperative agreements with local strategic partners or joint ventures to establish production bases, which will contribute to the sustainable growth of the Company. So far, TFM has generated great interest from institutional and retail investors. This is a clear sign of confidence that TFM stock has strong fundamentals that should be widely accepted by investors.

Produced by Public relations department., MT Multimedia Co., Ltd. for Thai Union Feedmill Public Company Limited

For more information, please contact: Ornanong Pattaravejakul (Fah)

Phone. : + 66-99-194-6597, + 66-86-801-8888, E-mail: ornanong.p@mtmultimedia.com

Copyright 2021 ACN Newswire. All rights reserved.

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