CPF Q1 profit up 71 percent

Thailand's Charoen Pokphand Foods (CPF) reported a 71-percent increase in net profits in the first quarter of 2009, thanks to improving gross margins and lower raw material prices.

 

Net profits reached THB770.5 million, up from THB451.24 million in the year ago period.

 

The result is due to successful production and financial management and a national and global improvement in the aquaculture business, back to normal after a one-year slowdown, according to President and CEO Adirek Sripratak.

 

First quarter sales reached THB34.77 billion, up from THB33.86 billion last year, despite reduced sales for business units such as livestock feed and livestock breeding resulting from lower production. 

 

The global financial crisis had little impact on CPF's export revenues as Thailand has received more orders from Japan as a result of the food safety issue in China last year, Adirek said. 

 

CPF's ready-to-eat products are also performing well, particularly in the US, he said.

 

The company is positive about its full year performance, especially for its ready-to-eat segment. 

 

Meanwhile, CPF's board has approved the increase of investment in Charoen Pokphand (India) Private Ltd from 71.2 percent of paid-up shares to 100 percent. 

 

Although the economy slowdown has reduced consumption, CPF may still benefit from falling raw material prices. 

 

CPF's performance in the second quarter should further improve due to the high export season, lower raw material costs and the company's improving chicken business in Turkey that is expected to break even in April, analysts said.

 

US$1 = THB34.4907 (May 14)