Consolidated financial statements in record time
Thai Union Group PCL.
ProjectGroup-wide implementation of a web-based data collection tool for actual and planning figures; Consolidation in compliance with Thai GAAP, IFRS and US GAAP; Easier, less time consuming intercompany reconciliation; Efficient management reporting
LucaNet has made communication and data collection within our group much easier. The process of intercompany reconciliation alone was reduced from two whole weeks to only three days, although our group is continuously growing and acquiring more companies. Thanks to LucaNet, we were able to do away with the Excel spreadsheets we had used previously and put an end to the large volume of e-mails sent during the reconciliation process. And last but not least, the quality of the data also improved dramatically. In total, LucaNet has enabled us to cut the consolidation process from ten to 1.5 days.
About the company
- Seafood products
- Bangkok - Thailand
- 40.000 (worldwide)
Enterprises operating at an international level rely on preparing their consolidated financial statements efficiently and publishing their financial figures quickly. Yet complex group structures and ever-stricter reporting requirements put them in a hugely challenging position. This is why the Thai Union Group relies on LucaNet to design its complex consolidation process – so that it can achieve a fast close.
Thai Union Group Public Company Limited, based in the Thai capital city of Bangkok, is one of the world's largest seafood producers, with an annual turnover of about EUR 3.29 billion and around 40,000 employees. The enterprise was founded in 1988 and has been listed on the Stock Exchange of Thailand (SET) since 1994. The group generates its turnover in a variety of product segments, while the enterprise is particularly famous for its tuna products. In addition to its parent group, the Thai Union Group also includes further sub-groups: one in the USA and one in Europe, each of which has four subsidiary groups of its own, in countries such as France and Poland. Rügen Fisch AG in Germany belongs to the company group.
Excel – the great time waster
In the past, Thai Union Group carried out its consolidation based on Excel files. This brought with it well-known disadvantages, such as a lack of intercompany reconciliation, insufficient data quality, and unnecessary delays in the process. As a result, the consolidation process took ten whole days to complete – and management reporting using consolidated results was impossible until 25 days after the figures had been submitted. There were several aims that Thai Union hoped to achieve by introducing LucaNet, as Pakin Thamrongwarasart, Head of Department Group Operations Assurance & Risk Management, explains: "The issue first of all was reducing the time required for the consolidation process. In addition to this, we also wanted to make management reporting more efficient, implement an improved budget process with greater automation, and help make the data more consistent and transparent. Finally, we wanted a professional software tool to replace Excel."
Consolidation process cut by 8.5 days
The Thai Union Group includes a variety of overseas sub-groups, some of which are minorities. The enterprise still uses ten different foreign currencies. As such, Thai Union follows a highly complex, multi-stage consolidation process in accordance with Thai GAAP, US GAAP and IFRS. 65 accounting areas need to be consolidated in LucaNet, and a total of 108 users have access to the database. Thai Union Group masters these challenges using all of LucaNet's consolidation wizards to automate and simplify the process, such as the wizards for debt consolidation and income and expense consolidation. On top of this, it also uses custom wizards it has configured itself. "The consolidation wizards in particular have really taken the pressure off us," Pakin Thamrongwarasart reports. “The major benefit they offer is that users can adjust the wizards themselves without the help of a consultant. The software has helped to make communication and data collection within the company group much simpler. The process of IC reconciliation alone was reduced from two whole weeks to only three days, although our group is continuously growing and acquiring more companies. Thanks to LucaNet, we were able to do away with the Excel spreadsheets we had used previously and put an end to the large volume of e-mails sent during the reconciliation process. And last but not least, the quality of the data also improved dramatically. In total, LucaNet has enabled us to cut the consolidation process from ten to 1.5 days."
Reporting completed 15 days quicker
Reporting is also very important at the Thai Union Group, since the enterprise not only needs to keep its internal stakeholders informed, but also the Stock Exchange of Thailand and other external stakeholders and investors. Thanks to LucaNet, the reporting process is now much faster and more efficient, as Pakin Thamrongwarasart explains: "We used to need 25 days to complete our monthly reports. With LucaNet, we can finish the whole process within 10 days, including consolidation. The software reliably records and validates the data generated by our international group, meaning we can consolidate the data almost at the press of a button and efficiently prepare them for reporting. And all this is possible in a single tool, with greater transparency and clarity for everyone involved. LucaNet has given us the perfect tools to execute a fast close and quickly provide our stakeholders with the financial data they need."