November 5, 2010

Charoen Pokphand Foods sees 2010 earnings rise 30%

Charoen Pokphand Foods PCL said Thursday (Nov 4) it expects 2010 earnings to grow 30% made by stronger shrimp prices and higher contributions from its overseas businesses.

Chief Executive Adirek Sripratak said that ongoing floods across Thailand have not affected its businesses.

CPF had previously said it expects its 2010 net profit would grow by more than 20% from THB10.19 billion (US$0.34 billion) posted last year.

Shrimp prices have been bolstered by a global supply shortage due to a disease outbreak in Indonesia and Brazil, while shrimp production in Malaysia, Vietnam, and China has been disrupted by natural disasters, said Adirek.

Another factor boosting the company's performance this year is inventory stock management as it has locked in raw material costs for feedmill throughout the middle of next year amid surging raw material prices in the global market, he said.