November 28, 2008


CPF's Q4 results expected to improve year-on-year

Thailand's Charoen Pokphand Foods (CPF) is expected to report better fourth-quarter earnings on an on-year basis.


Stable product prices and weaker raw material prices are expected to contribute to the result. However, the fourth-quarter result is projected to be weaker than the third quarter's.


CPF's fourth quarter net profit in 2007 were hurt by high grain prices and reached only THB 148 million (US$4.2 million), down 42 percent on-year.


For fiscal year 2009, CPF is forecast to register low sales growth due to slowing domestic and global economies. Product prices are expected to fall slightly in line with weaker raw material prices.


Company profitability and growth are expected to be sustained by continued high yields from overseas investments.


The projected weaker fourth quarter results compared to third quarter could have a negative impact on CPF's share price in the short term, but it is viewed as a seasonal impact.

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