CPF president and CEO Adirek Sripratak said yesterday that the investment would be made through the company's wholly owned subsidiary, CP Northeastern (CPN).

To facilitate the investment, CPN has set up CP Laos, which is currently undergoing registration in Laos, expected to be completed this year.

He added that the money would focus on animal-feed mills and pig and poultry farms. The company is surveying suitable areas in several provinces for the mills and farms, which will be established in the first half of next year.

"It is the first time the company is expanding investment in Laos to penetrate the local market," he said.

CPF has been investing in foreign markets for five years now. Turkey was one of the first countries, where the company invested in poultry farms, followed by aquaculture projects in China and India. The company also expanded aquaculture investment in Malaysia in the middle this year. Moreover, the company's board of directors approved investments in pig and poultry operations in Russia this year.

"Our investments in those countries have generated good results," Adirek said.

The company also reported to the Stock Exchange of Thailand yesterday that total sales grew 10 per cent to Bt91.9 billion during the first nine months of the year.

The growth came from the aquaculture projects in India, China and Malaysia. However, its poultry business has been hit by lower prices in the domestic market.

The company's third-quarter net profit plunged 63 per cent to Bt2.25 billion. Initial profits for CPF and its subsidiaries were affected by a 14-per-cent fall in meat prices in both Thailand and Turkey, compared with an 18-per-cent drop last year.

CPF's consolidated third-quarter sales were Bt32.58 billion, up marginally from Bt30.78 billion. But operating expenses rose from Bt29.32 billion last year to Bt31.9 billion and interest costs from Bt311.8 million last year to Bt519.7 million.

Earnings per share fell to 9 satang for the three months ending September 30, from 31 satang a year earlier.

During the first nine months of the year, CPF recorded a net profit of Bt2.25 billion, or 31 satang a share, down sharply from Bt6.02 billion in the same period last year.

CPF said that on December 7, it would pay an interim dividend of 5 satang a share for its third-quarter performance..

The Nation,

Dow Jones Newswires