November 10, 2011
Charoen Pokphand Foods' profits increase 18.7%
Thailand's Charoen Pokphand Foods reported on Wednesday (Nov 9) it had an increase of 18.7% in its quarterly profit due to strong growth in pork and shrimp sales as well as growth in overseas operations and equity gains.
CP Foods, 47.9% owned by CP Group, one of Asia's largest agribusiness conglomerates, posted a record net profit of THB5.09 billion (US$165.8 million), up from THB4.28 billion (US$139 million) a year earlier and THB4.87 billion (US$158 million) in the previous quarter.
Nine analysts polled by Reuters had an average forecast of THB5.08 billion (US$165 million) for the July-September quarter.
Analysts expect softer results in the fourth quarter because of seasonal factors but still expect growth from a year earlier.
Flooding in Thailand has had a minimal impact on CPF production and the company should benefit from rising meat prices after the floods, they said.
CP Foods' stock dropped 9.3% in the third quarter versus the broader market's 12% decrease.