Charoen Pokphand Foods PCL (CPF) posted total sales of THB136.353 billion (US$4.1 billion) in the second quarter this year, up by 8 percent compared with the same period last year thanks to overseas sales, which rose by 16 percent. However, CPF’s sales dropped 5 percent domestically.

Overseas operations in 16 countries accounted for 68 percent of the company’s total sales. The top three markets which generated main revenue included Thailand (32 percent), China (26 percent) and Vietnam (16 percent). These markets account for 74 percent of CPF’s total sales.

In the second quarter, CPF’s year-on-year net profit jumped by 45 percent to THB5.894 billion, and skyrocketed by 93 percent when compared with the first quarter of this year. The improved net profit was largely resulted from Vietnam’s performance, which bounced back to normal state.

Sooksunt Jiumjaiswanglerg, CEO for agro-industrial business and co-president of CPF, said the company’s performance has been affected by oversupply of pork and chicken meats in Vietnam. The price problem also affected Thailand in the middle of last year. However, prices of those two kinds of meat better adjusted to cover cost in April last year. Particularly, pork price in Vietnam has been corrected to normal level which was an important factor to push brighter result operation in Q2.

It is forecast that increasing price will further carry to next year. Pork and chicken prices have been rising continuously from the first quarter. The better prices will also be a factor to spur better result operation for the remaining year.  

The company pointed that currency crisis in Turkey, which accounted for 3 percent of CPF total sales, is unlikely to affect its performance as the operation in Turkey is now focusing on domestic consumption. Moreover, the company has made some improvement in financial structure in early 2018. Therefore, the decline in Turkish currency may result in more exports. 

Sooksunt added that following CPF’s vision sets to achieve “Kitchen of the World” by providing safety food and quality products that are able to trace back throughout product chains. Moreover, it also supports efficient resource consumption as well as taking responsibility for the social developments based on good corporate governance. These sustainability efforts are recognized by organizations across the world such as being a part of Thailand Sustainability Investment, DJSI and the recent FTSE4Good index.

The board of directors’ meeting convened on August 10 approved the interim dividend payment from the operating results of the first half period of 2018 at THB0.35 per share. The date for the right to receive the dividend will be on August 29 and the dividend payment will be made on September 7, 2018.