November 16, 2010

Thailand's CPF expects profit to grow more than 30%

Charoen Pokphand Foods (CPF), Thailand's biggest animal feed and food producer, said their profit may surge more than 30% this year, boosted by income from overseas businesses and food products.

Animal feed and agricultural businesses in countries including Russia, India, and the Philippines will help boost revenue to as much as THB190 billion (US$6.4 billion) this year, Chief Executive Officer Adirek Sripratak said.

Revenue in 2011 will rise between 5 and 10%. "Our overseas businesses, especially in India, have the potential to grow further," Sripratak said. The company's food and shrimp businesses will also continue to improve, he said.

CPF meals can already be found in Costco Wholesale stores in the US and at Sainsbury in the UK. Efforts are underway for shelf space at 500 Wal-Mart stores in the US.

The company plans to spend at least THB6 billion (US$202.3m) next year, mostly on overseas expansion, Sripratak said. That excludes the budget for potential investments in Bangladesh and Cambodia for its feed and farm business, he said.

The company hasn't been significantly affected by the appreciation of the baht because its product prices have increased and it's able to pass on some costs to trading partners, Sripratak added.