August 15, 2008

 

CPF posts net profit of US$42.5 million in H1
  
  

Charoen Pokphand Foods Plc (CPF) has announced a net profit of US$42.5 million in the first half of 2008, compared to a loss in the first half of 2007.

 

Revenue reached US$2.16 billion in the first half of 2008, up 14 percent on-year.

 

CPF's second quarter net profit reached US$29.1 million, up from US$28.2 million in the same quarter last year. Total revenue also increased to US$1.2 billion, up from US$1.05 billion in the same quarter last year.

 

Improvements were mainly due to positive meat sales in Thailand while a lower supply but high overseas demand for chicken and pork have driven up prices, according to the company.

 

Meat exports have also continued to expand as the company succeeds in negotiating a better price, and the company should be posting an even better outlook towards year-end, CPF said in a statement released to the Stock Exchange of Thailand.

 

CPF chief executive Adirek Sripratak said the company is confident of meeting its sales target of US$4.4 billion and reaching higher profits than last year. Adirek said CPF aims to hit US$6 billion in consolidated sales with a minimum equity return of 10 percent over the next five years.

 

Adirek said the company will take a cautious approach to investment for the next one to two years, due to unclear global economic situation.

 

CPF's expansion would focus mainly on countries where the company has operations in, such as Russia, which is seen as offering an excellent opportunity for business expansion. For its Thai operations, CPF has been working to improve corporate efficiency, including production, work processes, and research and development, Adirek said.

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