Thailand
Thailand: Overseas sales boost CPF revenue
Charoen Pokphand Foods Plc (CPF), Thailand’s largest food producer, reported yesterday 8% year-on-year growth in sales revenue for the first nine months buoyed by sales from overseas operations.
Total sales revenue was 372 billion baht for the period, an increase from 344.8 billion year-on-year, according to a CPF statement filed to the Stock Exchange of Thailand.
Sales revenue from overseas business rose 13% year-on-year, while its domestic sales revenue grew 7% for the period.
Overseas investment was key to developing CPF’s business growth, said Sooksunt Jiumjaiswanglerg, co-president and chief executive of agro-industrial business.
“Overseas sales accounted for 64% of total revenue, domestic sales 30%, and exports 6%,” said Mr Sooksunt.
CPF is a leading agro-industrial and food business in Thailand, but has expanded its business operations to China, Vietnam, the US, Taiwan, India, Turkey, Russia, Cambodia, Laos, the Philippines, Malaysia, the UK, Belgium, Sri Lanka and Poland.
The company has also been investing in Germany since last month.
CPF’s overseas food business posted 72% growth to a record high for the first nine months this year, resulting from investment expansion and merger and acquisition deals made last year.
Livestock farming has experienced an oversupply problem this year, particularly for swine in Vietnam, Cambodia and Thailand, said Mr Sooksunt, causing meat prices to drop below last year’s levels.
Pork prices have plunged by 40% in Vietnam, forcing the company to sell meat below production cost, which reduces the profit margin, he said.
The company’s net profit in the first nine months was registered at 12.93 billion baht, down from 12.96 billion in the same period last year.
CPF has put in place cost and expenditure management by increasing efficiency in both production lines and operations, said Mr Sooksunt.
CPF shares closed yesterday on the Stock Exchange of Thailand at 25 baht, a decrease of 50 satang, in trade worth 356.5 million baht.
Source: https://www.bangkokpost.com/business/news/1360527/overseas-sales-boost-cpf-revenue