August 20, 2018

CPF's net profit for Q2/2018 jumps 45%



Charoen Pokphand Foods PCL (CPF) posted total sales of THB136.353 billion (US$4.12 billion) in the second quarter of 2018, up by 8% compared with the same period last year, the company announced.

CPF attributed the increase to overseas sales which rose by 16%. However, CPF's sales dropped 5% domestically.

Currently, overseas operations in 16 countries accounted for 68% of the company's total sales while the domestic sale for 27% and export from Thailand for 5%. The top three markets which generated CPF's main revenue included Thailand (32%), China (26%) and Vietnam (16%) These markets account for 74% of CPF's total sales.

In the second quarter, CPF's year-on-year net profit jumped by 45% to THB5.894 billion (US$178.2 million), and skyrocketed by 93% when compared with Q1 of this year. The improved net profit was largely resulted from Vietnam's performance which bounced back to normal.

Sooksunt Jiumjaiswanglerg, CEO for Agro-Industrial Business and co-president of CPF, said the company's performance has been affected by oversupply of pork and chicken meats in Vietnam. The price problem also affected Thailand in the mid of 2017. However, prices of those two meats had adjusted well to cover cost in April last year.

Particularly, pork price in Vietnam has been corrected to normal level which was an important factor for a more positive result in operation during Q2.

It is also forecast that increasing prices will continue to next year. Pork and chicken prices have been rising continuously from Q1. The better prices will also be a factor to spur better results in operation for the remaining year. 

The company pointed that currency crisis in Turkey, which accounted for 3% of CPF's total sales, is unlikely to affect its performance as the operation in Turkey is now focusing on domestic consumption.

Moreover, the company has made some improvement in financial structure in early 2018. Therefore, the decline in Turkish currency may result in more exports.

Jiumjaiswanglerg added that CPF's vision sets to achieve "Kitchen of the World" by providing safety food and quality products which could be traced throughout product chains.

Moreover, the company also supports efficient resource consumption as well as taking responsibility for social developments based on good corporate governance.

The meeting of CPF's board of directors' convened on August 10, during which the interim dividend payment from the operating results of the first half period of 2018 at THB0.35 (US$0.01) per share was approved. The record date for the right to receive the dividend will be on August 29, and the dividend payment will be made on September 7.