CP Foods’s Q4 profit soars on overseas businesses
Thai food giant Charoen Pokphand Foods PCL (CPF) saw its net profit jump in the fourth quarter of last year thanks to operations in other countries, the company said in a statement 21 February.
The company’s net profit increased 139 percent year-on-year to THB 4.01 billion (USD 126.3 million, EUR 116.6 million) during October through December 2019 due to “impressive performance” of its overseas businesses – especially in Vietnam – CPF’s CEO Prasit Boondoungprasert said.
The high profit in the quarter helped lift the company’s 2019 profit to THB 18.456 billion (USD 581.5 million, EUR 536.6 million), up 19 percent from 2018, with operations in Vietnam and other countries contributing an important role.
CPF said it achieved the earnings despite having had to deal with various challenges including the fluctuation of Thai currency, the baht, and lower supply of pork caused by the African swine flu.
The company’s sales revenue, however, fell 2 percent year-on-year to THB 140.8 billion (USD 4.44 billion, EUR 4.1 billion) in the fourth quarter. The drop was attributed to appreciation of the baht and the implementation of the new accounting standards, CPF said.
Its overseas businesses contributed 67 percent of total sales with the remainder generated by operations in Thailand.
Looking forward, CPF hopes its businesses will perform well this year as pork shortages, particularly in China and Vietnam, are expected to increase compared to 2019.
The company said it is proceeding with its expansion plan to raise the revenue share contributed by its overseas businesses to 80 percent of total within five years.
“CPF adopts three approaches to drive the strategy: Raising the supply chain's value through innovations; adaptation to digital transformation; and creating added value to all stakeholders with best practices in sustainable development,” said CPF, which is involved in aquaculture feed and aquaculture farming – among others things – in several markets.