January 26, 2015
Analysts debate on CP Foods shrimp unit performance in 2015
The shrimp unit of Charoen Pokphand Foods will post a THB900 million operating loss for Q4 2014, shallower by 22% year-on-year, but seasonally deeper by 99% quarter-on-quarter, reported brokerage Bualuang Securities.
According to the report, the shrimp unit recovery is proving weaker than earlier anticipated. Bualuang Securities however expects stronger numbers for the unit, from Q2 2015 through H2 2015.
CP Foods' shrimp operating loss should ease to THB1 billion for 2015 for 2014, an improvement on the level of THB3.5 billion (US$107.43 million) for 2014.
Bualuang Securities is basing this recovery on an increased industry-wide shrimp output of 280,000 to 300,000 tonnes, compared to 200,000 to 220,000 tonnes for 2014.
Meanwhile, the Thai Frozen Foods Association (TFFA) has forecast 250,000 tonnes as a low level for 2015, with 300,000 tonnes seen as the best-case scenario.
However, with Thai production plunging from a peak of 650,000 to 200,000 tonnes in 2014 due to early mortality syndrome (EMS) and other shrimp diseases, some foreign experts are skeptical that recovery will meet Thai forecasts.