CPF reports profit jump, egg product certification

For the last 12 months, Thailand-based agri-food group Charoen Pokphand Foods reports a 60% year-on-year increase in operating profit.

(Charoen Pokphand Foods)
(Charoen Pokphand Foods)

For the last 12 months, Thailand-based agri-food group Charoen Pokphand Foods PCL (CPF) reports a 60% year-on-year increase in operating profit. Also announced is the first environmental certification for egg products and progress towards achieving net zero emissions.

At almost 614.2 billion baht (THB; US$17.37 billion), total sales revenue for the 2022 financial year is 20% higher than over the previous 12 months, reports CPF

Driving the increase were increased volumes sold in some markets, combined with higher product prices. 

Of its overall revenue, 63% derives from its overseas businesses, according to the group. Exports represent 6%, and 31% comes from its domestic operations.

CPF reports operating profit — expressed as Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) — was 60% higher than for the previous year. This it attributed to a 159% increase in the Bio-product fair price. At THB13.97 billion, net profit was 7% higher year-on-year.

The firm’s strict biosecurity measures have so far been effective in preventing any cases of African swine fever at its operations in Thailand and elsewhere. CPF CEO Prasit Boondoungprasert attributed the group’s positive fiscal performance, at least in part, to its disease control protocols.

Other drivers he identified were the establishment of “new-normal” operations following the coronavirus (COVID-19) pandemic, as well as the use of new technology to improve efficiency, and the development of new sales channels and value-added products.

As the group’s Thai operations completed the switch from coal to renewable energy at the end of last year, Prasit said that CPF’s growth over the past year has been achieved sustainably. 

CPF’s prospects for the coming year

Business challenges are likely to continue during the coming year, according to the CEO. These are likely to come from animal and human disease outbreaks, higher interest rates, economic difficulties in some countries, and the ongoing market pressures arising from conflict.

While expressing confidence in CPF’s continuing strong growth in the coming 12 months, Prasit warned that the group will take a cautious approach to its operations and investments. 

Earlier this year, Bangkok Post reported that the group was assessing opportunities to invest in the Middle East. With a total investment of around THB1billion, CPF’s CEO stated that the company was studying possible future investment in new production facilities for shrimp and chicken in the region. Without identifying any particular target country for this investment, he said that the region is attractive due to its high population and consumer purchasing power. 

Certified carbon footprint for CPF egg products

Thailand’s first certification for egg products with an official carbon footprint are manufactured by CPF, according to CPF in a recent press release.

A “Carbon Footprint Reduction Label” or “Global Warming Reduction Label” has been bestowed by the Thailand Greenhouse Gas Management Organization (TGO). It covers 23 egg products from CPF’s fresh and cage-free eggs. 

These products join more than 800 CPF products including fresh pork, chicken, shrimp, and animal feed, which have already been awarded the Carbon Footprint Label. Additionally, 50 of its products are been given the TGO global warming reduction label.

This certification recognizes the company for its efforts to mitigate greenhouse gas emissions (GHG) in the food production chain. It will also help CPF in its mission to achieve its net-zero emission goal by 2050, as well as giving consumers more choice in their purchasing.

According to CPF, its hens laying eggs destined for processing are kept in closed houses with modern technology and automation. Packaging is made either from 100% recycled paper or PET from 80% recycled plastic. 

Where possible, renewable energy is used, including solar panels at seven layer complexes across Thailand. Furthermore, they generate electricity from biogas produced from poultry manure. One of the facilities will be using only renewable energy by the end of this year. 

More on CP Foods

With annual slaughterings of 685 million birds, CPF is among the largest poultry-producing companies in Asia, according to WATTPoultry.com’s Top Poultry Companies survey.

In recent weeks, CPF has released a roadmap to achieve net zero sustainability for its businesses by 2050. The group is also implementing a new food safety initiative.

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