CPF expects record high net profit in 2009

 

 

Charoen Pokphand Foods (CPF), Thailand's largest agricultural conglomerate, said Tuesday (Nov 10) that its 2009 net profit will likely reach a record high of around THB10 billion (US$300.2 million) on improved margins.

 

The company posted a net profit of THB3.13 billion in 2008.

 

CPF president Adirek Sripratak said sales this year, however, will likely rise 3-percent to 5-percent below its previous forecast of 5-percent to 10-percent growth as the company shifts its focus away from sales volume to profitability.

 

Sripratak said fourth-quarter net profit is unlikely to beat its July to September earnings - which almost tripled to THB4.12 billion - due to seasonality, but should be stronger than a year earlier due to its growing shrimp business.

 

It expects gross margin in 2009 at 17 percent compared with around 14 percent last year.

 

Due to bird flu outbreaks and other diseases for the past five years, the president said the company will now focus on profitability, with net profits likely to grow at least 5 percent annually.

 

To leverage its risk, the firm will balance sales from its three key businesses. Within the next five years, it expects sales from farm feed, farming, and food to each contribute one third of earnings, compared with 34 percent, 47 percet and 19 percent currently.

 

CPF has invested in nine countries, currently has operations in 15 countries and its products are sold in almost 40 countries. It recently said it is studying the possibility of expanding its business in Africa.

 

 

US$1 = THB33.29 (Nov 11)