May 20, 2026
 

CPF Q1 net profit surges 349% quarter on quarter to THB4.875 billion as meat oversupply begins to ease

China pork oversupply and year-on-year earnings weakness remain headwinds, with a clearer market balance expected in the second half.

Charoen Pokphand Foods Public Company Limited (CPF) posted a net profit of THB4.875 billion (US$144 million) in the first quarter of 2026, up 349% from the previous quarter, as market conditions improved following the meat oversupply that weighed on performance at the end of 2025. Against the same period a year earlier, however, net profit fell approximately 43%, reflecting persistent pork oversupply across several markets and weaker consumer demand.

Sales revenue reached THB136.697 billion (US$4.05 billion) in Q1 2026, down around 5% year on year, largely due to foreign exchange translation effects from overseas operations into Thai baht. Operations across 13 countries contributed approximately 65% of total sales, with Vietnam ranking as the second-largest revenue contributor after Thailand at 18% of total revenue.

Chief Executive Officer Prasit Boondoungprasert said the quarter showed clear signs of recovery from the oversupply conditions seen at year-end, underpinned by efficiency improvements across the business. He noted, however, that China operations continued to underperform against targets due to significant pork oversupply in that market.

CPF faces ongoing cost pressure from rising energy prices linked to Middle East tensions, which have pushed up transportation, packaging and feed raw material costs. Weaker consumer purchasing power and more cautious spending behaviour in several markets have added further pressure, with Prasit flagging the potential for deflationary conditions in some operating regions.

To manage input cost volatility, CPF is strengthening integrated supply chain management and accelerating its ready-to-eat food segment, which the company has expanded across several countries. Vietnam is identified as a key growth market for convenience food products.

CPF expects market balance to improve more visibly in the second half of 2026.

— CPF