CPF reports 35 percent jump in net profit in 2nd quarter
Charoen Pokphand Foods forecasts its business will grow by 10-15 percent for the year
For the second quarter of the year, Thailand-based Charoen Pokphand Foods PCL (CPF) has reported total sales up 13 percent to THB116.78 billion (US$3.37 billion), and a 35 percent increase in net profit to THB4.016 billion (US$116 million). The company forecasts its business will grow by 10-15 percent for the year.
As of June, CPF was active in 14 countries. For its home base, revenue increased 12 percent to THB44.63 billion (US$1.29 billion), while its overseas businesses brought in 13 percent more revenue at THB72.15 billion (2.08 billion).
More than three-quarters of the company’s income is generated in Thailand, China and Vietnam. By business, 85 percent of CPF’s sales for the first 6 months of the 2016 fiscal year were from livestock, and 15 percent from aquaculture. By product, feed, animal/aqua production and food contributed 47 percent, 42 percent and 11 percent to half-year sales, respectively.
CPF’s president and CEO, Adirek Sripratak, highlighted that the company had achieved a gross profit margin of 17.4 percent this year, and that profit before tax had grown by 91 percent. He attributed these improvements to the recovery of the livestock businesses in Thailand and Vietnam, which were oversupplied with meat a year ago, and the continuing success in tackling Early Mortality Syndrome in farmed shrimp.
In July, Charoen Pokphand Group (CP Group) announced it had acquired a majority share in Norfolk Foods of Sri Lanka, its first acquisition in the South Asian country.
CPF seeks to expand in Cambodia
CPF sees a largely unfilled demand for native chickens in the Cambodian market, according to a recent report in Phnom Penh Post. Cambodians prefer the taste, leanness and color of the native breed over commercial poultry for their traditional dishes.
“Healthy chicken for people’s health is the main goal of CP Cambodia Poultry Business,” said Wittaya Srisom, vice president for the poultry business of CP in the country.
While CP Cambodia already has native and commercial lines of chicken, the company is seeking to engage with local farmers to expand the business opportunities there.