December 27, 2019

CPF to raise overseas investments in 2020

Charoen Pokphand Foods PLC (CPF) chairman of the executive committee, Adirek Sripratak, told Bangkok Post the company plans to further expand its overseas business and he expressed confidence that CPF's financial performance will meet targets thanks to positive returns from investments in Thailand and 17 other countries.

His statement echoed a belief that amid weakening purchasing power, food business will thrive from persistent demands for products that are safe, traceable, and environmental and community friendly. Adirek explains this is why CPF's food products have been warmly welcomed by worldwide consumers.

Adirek revealed that in 2020, CPF will maintain its focus in growing business in potentially new country markets including the 17 countries where CPF's businesses have been located. Destinations with high growth opportunities cited are China, Vietnam, India, the Philippines, Russia and the United States.

CPF's business growth has been largely driven by overseas investments in these 17 countries which make up more than 70% of the company's revenue. In comparison, its revenue generated in Thailand is about 27-28% while the revenue from Thai exports constitutes only 5%.

Adirek admitted that drought, expected to increase in severity next year, may negatively affect Thailand's agricultural sector which relies heavily on water. However, CPF's livestock business is supported by abundant water sources. The company may also face a slight increase in production cost due to cyclical adjustment in raw material prices. In response, CPF will maintain its emphasis on production efficiency, cost management, and product and service quality.