CP Foods’s H1 profit jumps; aquaculture business improves
Thailand-based Charoen Pokphand Foods PCL (CPF) saw its net profit rise in the first six months of this year, mainly due to a pork shortage in Asia and improvement in its aquaculture business in Thailand, the company said in a 13 August statement.
The company’s net profit soared 45 percent year-on-year to THB 12.14 billion (USD 390 million, EUR 330 million) during the period spanning January through June 2020 due to “the African Swine Fever (ASF) in Asia and a significant improvement in Thailand's aquaculture business following operational restructuring.”
Since its discovery in August 2018, ASF has spread to every province in mainland China. It has also crossed into Vietnam, Cambodia and other countries, resulting in production losses and thus increasing prices.
The company’s sales revenue in the period also surged 9 percent year-on-year to THB 281.9 billion (USD 9 billion, EUR 7.7 billion).
Its overseas businesses in 16 countries witnessed a year-on-year growth of 12 percent, accounting for 69 percent of the total sales, while the operations in Thailand saw an increase of 2 percent.
CPF’s CEO Prasit Boondoungprasert said he expects the pork shortage in Asia, particularly in Vietnam, is not likely to end soon as vaccine for the disease has not been developed while farming cost is on the rise.
The company, therefore, is hoping to achieve better financial outcomes throughout 2020.
“CPF is likely to report record annualized net profits in 2020 thanks mainly to regional pork shortages that will keep pork prices above last year’s levels as well as continued growth in profits from Thailand’s aquaculture business,” he said.
According to Boondoungprasert, the COVID-19 pandemic has negatively affected the purchasing power and overall economy but the impact on CPF is “mild” as its products are considered as essential for life.
He added that the company has focused on application of technology and made some adjustments in operations to adapt to the new environment.