Thai food giant Charoen Pokphand Foods PCL (CPF) reported a decline in profit gained from its aquaculture segment in the third quarter, according to CPF’s third-quarter results released on 12 November.
The company’s operating profit from the aquaculture business from July to September was THB 1.57 billion (USD 51.9 million, EUR 43.9 million), down 28.4 percent from the same period in 2019.
Its profit from the aquaculture segment also decreased slightly 0.2 percent year-on-year to THB 4.86 billion (USD 160.7 million, EUR 135.8 million) in the first nine months of 2020.
CPF’s revenue from the aquaculture segment in the third quarter was THB 20.56 billion (USD 680 million, EUR 574.3 million), 2.6 percent lower year-on-year. Its aquaculture business revenue between January and September fell 1.9 percent from a year ago to THB 57.21 billion (USD 1.9 billion, EUR 1.6 billion).
CPF, however, said adjustments in marketing strategies and business model have helped it earn more profits in its home country.
“Aquaculture business in Thailand has also improved due from adjustment in marketing strategy and efficiency improvement in operations. This has resulted in significant increase of shrimp sales in Thailand,” the company said, adding that its aquaculture business is expected to have a “bright future” in Thailand and abroad.
Overall, CPF recorded a net profit of THB 7.47 billion (USD 247 million, EUR 208.7 million) from all its business segments in the third quarter, rising 23 percent year-on-year, mainly attributable to a surge in sales revenue and profit margin of its operations overseas. Its income in the first nine months rose 36 percent year-on-year to THB 19.61 billion (USD 648.5 million, EUR 547.8 million).
The company’s total revenue from sales during July-September also grew 19 percent year-on-year to THB 157.8 billion (USD 5.22 billion, EUR 4.41 billion).
CPF’s greater profitability and revenue from sales this year mainly came from pork shortages causing higher prices and an improved performance of the firm's aquaculture business in Thailand, it said.
CPF CEO Prasit Boondoungprasert said he expected earnings growth to keep the momentum in 2021 due to business expansion and capacity addition in many countries in which the company operates.
