CHAROEN Pokphand Foods Plc (CPF) has announced a first–quarter sales of Bt120.51 billion, up 1 per cent year on year and a net profit of Bt3.05 billion, down 23 per cent from the same period last year.
Growth rate has declined mainy due to falling prices of livestock products and stronger exchange rate compared with the previous period. However, the recovery in pig prices in Vietnam and Thailand since April is a positive sign for the business, and the company is confident that the performance will achieve goals for 2018.
Overseas investment in 15 countries accounted for 66 per cent of total sales while the domestic sales and exports accounted for 29 per cent and 5 per cent respectively. Top three markets are Thailand, China and Vietnam which made up for 73 per cent of CPF’s total sales.
Sooksunt Jiumjaiswanglerg, chief executive officer for Agro-Industrial Business and co-president at CPF, said the company’s performance has been challenged by the oversupply of pigs in Vietnam and Thailand. Vietnam’s pork prices has dropped lower than the production cost since late 2016 while pig price in Thailand has dropped below the production cost since the fourth of 2017. Both markets have seen a recovery price since April 2018. Sooksunt expects that pig prices will improve in the later periods this year, resulting in a better overall performance for the whole year.
Sukhawat Dansermsuk, CPF’s chief executive officer/ food business and co-president, added that the food business is challenged by rapid changes in consumer behaviour and diverse requirement. “We are keeping in mind that food safety must come with good taste. Therefore, CPF strive to deliver wide range of innovative food products from ready-to-cook meal, ready-to-eat meal, snacks, healthy foods, patients’ foods and foods for elderly,” he said. The company has been conducting researches to improve the production process in pursuit of effective costs. It also focuses on high quality of raw materials.
On May 11, TRIS Rating affirmed "A+" for CPF's company rating and its corporate debentures of 2018 rating. The rating reflects CPF's strong position in the global agribusiness and food industry with diverse portfolios of operations in many countries as well as variety of products and markets.