Bangkok, Thailand-based food giant CP Foods has reported a growth in its total sales over the first three months of 2022, with revenue from its aquaculture operations rising significantly.
The company’s total sales value in the first quarter was at THB 138.9 billion (USD 4 billion, EUR 3.82 billion), up 16 percent from Q1 2021, CP Foods’ investor presentation in the first quarter showed.
CP Foods’ combined sales from its aquaculture operations in Thailand and other countries were THB 19.9 billion (USD 575.3 million, EUR 547 million), up 31 percent year-on-year, accounting for 14.3 percent of the company’s total sales in the quater.
Of that total, revenue from its aquaculture operations in Thailand rose 14 percent year-on-year to THB 7.03 billion (USD 211.4 million, EUR 201 million), while its overseas aquaculture sales soared 42 percent year-on-year to THB 12.84 billion (USD 371.8 million, EUR 353.5 million).
CP Foods’ aquaculture revenue from its Vietnamese operations grew 34 percent year-on-year to THB 5.29 billion (USD 153.2 million, EUR 145.6 million), and its aquaculture sales in China rose 16 percent to THB 111 million (USD 3.2 million, EUR 3 million). Its aquaculture-related revenue from its remaining markets reached THB 7.44 billion (USD 215.4 million, EUR 204.8 million), up 49 percent year-on-year, according to CP Foods.
Despite a rise in sales, its net profit fell 59 percent year-on-year to THB 2.8 billion (USD 82.2 million, EUR 78.2 million) in Q1. It said the decline was mainly attributable to a drop in pork prices in Vietnam and China, which were kept at low levels from last year. Rising prices of raw materials for animal feed production also put more pressure on the company in the quarter, it said.
CP Foods said its operating costs had increased due to a number of factors, including the Russia-Ukraine war, which affected the foreign exchange rates and resulted in the hike of energy prices and feed ingredients prices.
“CP Foods has closely monitored the situation and adjusted business models accordingly to changes in consumer behaviors. It has also given importance to production management and operational efficiency, to keep the operating cost at a competitive level,” the company said.
CP Foods CEO Prasit Boondoungprasert said he expects the company’s overall financial performance to improve through the remainder of 2022 due to a recovery in food demand and a relaxation of travel restrictions in Thailand and other countries following the easing of the COVID-19 outbreak.
Photo courtesy of CP Foods
