August 14, 2020

 

CPF's first-half earnings jump 45% to THB12,139 million

 


Charoen Pokphand Foods PLC (CPF) reported THB12,139 million in net profits in the first half of 2020, a jump by 45% from the corresponding period a year earlier, chiefly due to the African swine fever (ASF) in Asia and a significant improvement in Thailand's aquaculture business following operational restructuring.


CPF reported first-half sale revenue worth THB281,940 million, a 9% increase from the same period last year. While the sale revenue of overseas businesses in 16 countries expanded by 12%, the revenue contributed by the operations in Thailand increased by 2%. The overseas businesses' contribution to the company's sale revenue thus hit 69%, while operations in Thailand generated the remaining 39% from domestic distribution as well as exports.


Prasit Boondoungprasert, CEO of CPF, attributed the improved earnings mainly to overseas businesses that CPF has grown in the past 10 years.  He specifically mentioned pork shortages in Asia and Vietnam in particular, following the ASF outbreak. He expected the shortages to continue as the vaccine has not yet been developed while farm operating cost would rise due to stricter bio-safety and disease control measures.


Concerning the COVID-19 pandemic, Boondoungprasert admitted that it has dented the purchasing power and overall economy. However, CPF has witnessed mild impacts as its products are essential for everyday life.  Meanwhile, it has emphasised on the application of more technology and adjustments in operational/sale formats in accordance with the changing circumstances.


Boondoungprasert added that the aquaculture business in Thailand showed an impressive improvement following operational restructuring. The greater efficiency achieved led to strong growth in profitability.


Looking forward, Boondoungprasert expected CPF to show impressive financial results throughout 2020. CPF is likely to report record annual net profits in 2020 due mainly to regional pork shortages that will keep pork prices above last year's levels as well as continued growth in profits from Thailand's aquaculture business. Additionally, CPF is set to cash in on added values and investment returns while consumption is expected to recover.


- CPF

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