May 9, 2008

CPF likely to profit in Q1 due to higher meat prices
 

Charoen Pokphand Foods (CPF) is likely to net THB 671.2 million (US$21.2 million) in the first quarter due to higher chicken and pork prices, analysts said.

Domestic pork prices have increased by 62 percent on-year while chicken prices rose 32 percent.

The prices are expected to remain at its high level due to a weak supply as many producers had left the business last year when prices were low.

CPF generates its revenue mainly from its sales of chicken and pork as well as feed meal products. Chicken and pork accounts for 40 percent of revenue while feed meal products represent 35 percent.

The company should fully recover its earnings in the second and third quarters as they are traditionally the best business periods, according to the analysts.