February 24, 2012

CP Foods posts 17% gain in Q4 profit

Thailand's largest agribusiness company Charoen Pokphand Foods Pcl on Wednesday (Feb 22) reported a 17% rise in quarterly profit, citing high farm prices and the expansion of its food and export businesses.

CP Foods, 47.9% owned by CP Group, one of Asia's largest agribusiness conglomerates, posted an October-December net profit of THB2.4 billion (US$78.1 million), up from THB2.05 billion (US$67.5 million) a year before but down from THB5.09 billion (US$167.7 million) in the third quarter.

The result was slightly above the THB2.34-billion (US$77.1-million) forecast from 15 analysts surveyed by Thomson Reuters I/B/E/S.

Its 2011 net profit of THB15.8 billion (US$520 million) was higher than the THB13.6 billion (US$448 million) made in 2010 and beat the THB15.6-billion (US$514-million) forecast by analysts.

They are positive on the company's earnings outlook this year following its acquisition of a 74.2% stake in Hong Kong-listed C.P. Pokphand Co Ltd (CPP) in November.

"We remain positive for its long-term growth. We forecast profit will rise 39% this year to THB21.4 billion (US$704.9 million), supported by the CPP consolidation," Maybank Kim Eng Securities's KELIVE said in a note.

Last month, the company said it expected sales in 2012 to exceed THB300 billion (US$6.58 billion).