June 25, 2008

Charoen Pokphand Foods (CPF) is expecting 2008 sales to increase about 15 percent on-year, according to chief executive Adirek Sripratak.

CPF has adjusted their prices in relation to the higher input costs for products sold in the EU and Japan, Adirek said.

Adirek said high poultry production cost in Brazil and the US as well as food safety concerns in China is helping to make the penetration of the EU and Japanese markets easier.

Sales this year will exceed THB150 billion (US$4.5 billion), with future sales growth ranging between 10-15 percent as the company aims for a consistent net profit of 5 percent in sales within five years, Adirek said.

The company is expecting domestic sales to drop to 60 percent of total sales from 65 percent due to the political crisis and drowsy domestic consumption. Adirek said overseas businesses and processed food products would be expanding due to the large margin and it is expected that the two divisions would make up a greater proportion of the company's total sales.

In addition, CPF has earmarked THB4 billion (US$119.3 million) for investment in 2008, with plans to expand operations in Russia and the EU.