CPF records three-fold increase in Q1 net profits

Charoen Pokphand Foods (CPF) reports net profit for the first quarter of this year at THB3.224 billion (US$99.56 million), up from just under THB771 million (US$23.80 million) for the same period last year.

Earnings per share for the last quarter were THB0.48 (US$0.0148), compared with THB0.11 (US$0.003) for the first quarter of 2009.

According to the report, net profit of the company and subsidiaries for the first quarter of 2010 was reported at THB3.224 billion (US$99.56 million), which increased by 318% compared to that of the previous year.

The increase was mainly due to the increase in operating results of Thailand operations, which resulted from the continuous improvement in cost management efficiency, and the increase in operating results of overseas operations, especially from subsidiaries in Turkey, India and Malaysia.

Gross profit margin of the company and its subsidiaries increased from 15-18%. In addition, the decline in finance cost, which resulted from the efficiency in financial management, urged the net profit to increase from 2% to 7%.

The results from the second quarter of 2010 should be even better due to the high season for exports and shrimp sales.

The political turmoil has had no impact on company performance. Domestic meat prices remain at very favourable levels. Swine and broiler prices stand at THB62 (US$1.91) per kilogramme and THB40 (US$1.23) per kilogramme, respectively.