May 10, 2007

CPF announces larger than expected losses for Q1

Thailand's biggest meat and feed producer Charoen Pokphand Foods posted a THB 1.13 billion loss for its first quarter.

The loss was more than the THB900 million (US$27.736 million) and THB1 billion (US$30.818 million) expected by the market.

The Q1 result was also a stark difference from the same period last year, when CPF registered a net profit of THB 550 million (US$16.9 million). 

Total sales revenue was up 6 percent from a year earlier to THB 29 billion (US$890.3 million). The company derives almost 70 percent of its revenue from domestic sales and aims to achieve a 50-50 balance of domestic and export sales in 5 years.

CPF president Direk Sripratak said declining consumer spending has affected prices of pork, chicken and eggs, while feed costs have risen. 

On top of that, the stronger baht, which has risen 11 percent this year, wiped out foreign exchange gains made last year.

Despite the larger than expected losses, CPF said it would have a better showing in the second half of the year and is on track to achieve its recently revised 10 percent growth target in revenue.