March 7, 2017
Charoen Pokphand Foods nets US$419M in 2016
Charoen Pokphand Foods PCL (CPF) has reported a net profit of 14.703 billion baht (US$419.13 million) in 2016, or 33% more than the previous year.
The leading livestock and aquaculture company attributed the substantial rise largely to the terrestrial animal business in Thailand, which got back to normalcy, and the gradual recovery of the shrimp industry in Thailand after being affected by the early mortality syndrome, or EMS.
The profit increase also partially came from CPF's new subsidiaries in Russia and Cambodia, together with "effective cost management mechanisms", it said.
Mr. Adirek Sripratak, president and CEO, stated that rapidly evolving situations, economic outlook and social behavior were CPF's major business challenges.
He said that by expanding business in strategic areas with growth potential, CPF aims to increase its sales by 10% this year. "Most of the growth, however, would mainly come from CPF's overseas business", he added.
CPF's board of directors also resolved to divide the company's business into two major lines, namely, the agroindustry and the food business, since CPF's sales revenues were as high as THB464.465 billion during the past year and considering the fact that "the company operates a full line of business from upstream to downstream with an extensive network covering 16 countries worldwide, where each area has an opportunity to expand its operation in each business field".
The board likewise appointed Mr. Sooksant Jiamjaiswanglerk as chief executive officer - Agroindustrial Business and co-president overseeing the agricultural business, and Mr. Sukhawat Dansermsuk as CEO - Food Business and co-president of the food business.
According to Adirek, the two businesses will strive to sustainably expand CPF's operations and will be managed in a concerted manner for maximum efficiency.