November 11, 2010
Charoen Pokphand Foods PCL (CPF) said Wednesday (Nov 10) its sales this year may reach up to THB190 billion (US$6.4 billion).
The company added that it could grow further 5%-10% more in 2011 on robust shrimp prices and a stronger performance from overseas operations.
Chief Executive Adirek Sripratak said that the strong baht, which has gained around 11% against the US dollar this year, has not had a significant impact on overall earnings, with only some weakness in its chicken business. But this was offset by the growing shrimp business as it could raise the selling price while its competitors in Vietnam, Indonesia and Malaysia faced shrimp disease problems.
According to Adirek, CPF couldn't raise chicken prices at the same pace of the baht's appreciation. Adirek reiterated that net profit this year could outpace the THB10.19 billion (US$0.34 billion) recorded in 2009 by at least 30%.
During the first nine months of 2010, the company posted THB11.51 billion (US$0.39 billion) in net profit on sales of THB141.77 billion (US$4.8 billion). Its almost 4% rise to THB4.28 billion (US$144.8 million) in third quarter net profit beat the THB4.14 billion (US$140.1 million) forecast in a Dow Jones Newswires' poll of eight analysts.
The SET-listed flagship of Thailand's largest agricultural conglomerate estimated that its shrimp export to grow 50% to 75,000 tonnes in 2011 from expected 50,000 tonnes this year.
The firm expects overseas business contribution to rise to more than 30% next year from 27% at the end of the third quarter.
Adirek said risks to its business next year include rising raw material prices, the EU's limits on chicken imports, and the possibility of agricultural disease affecting operations.
CPF expects to spend THB6 billion (US$203 million) on investment in 2011, of which THB4 billion (US$135.3 million) will be invested in expanding business in Russia, India, the Philippines, Malaysia and Turkey. This budget excludes the investment in farm feed and farming businesses in Bangladesh and Cambodia, which are expected to be concluded either later this year or early next year, Adirek said.
