Bangkok, Thailand-based Charoen Pokphand Foods reported a decline in its net profit in the first six months of this year, mainly due to falling profit-sharing from investments.
Its net profit over the six months spanning January to June was THB 11.7 billion (USD 350 million, EUR 296.6 million), down 4 percent from a year earlier, the company said in its H1 financial report, released 13 August.
CP Foods' sales revenue in the period also dropped 12 percent year-on-year to THB 249 billion (USD 7.5 billion, EUR 6.3 billion) after the status of its subsidiary Chia Tai Investments Co., Ltd. (CTI) was changed to an affiliated company in December 2020. No revenue from the sale of CTI, which runs an animal feed business in China, was recorded this year due to this status change.
CPF said without this change, its sale revenue and earnings before interest, tax, depreciation, and amortization (EBITDA) in the first half of 2021 would have increased 12 percent and 10 percent year-on-year, respectively.
CPF saw an increase of 8 percent in its operations in Thailand and a hike of 14 percent in other countries, mainly thanks to rising sale volume and product prices in several markets including the Philippines, Cambodia, and Russia.
CP Foods reported a rise in its sales revenue and profits in 2020 thanks partly to the improvements of its shrimp aquaculture segment in Thailand. CP Foods' sales revenue rose 11 percent year-on-year to THB 589.7 billion (USD 17.7 billion, EUR 15 billion), while its net profit jumped 41 percent from 2019 to THB 26 billion (USD 779 million, EUR 660.3 million).
The company also earned a net profit of THB 7 billion (USD 207.9 million, EUR 176.2 million) in the first quarter of this year, surging 13.6 percent year-on-year.
However, CP Foods' net profit between April and June over April-June fell 21 percent year-on-year to THB 4.7 billion (USD 142 million, EUR 120.4 million) due to a change in the fair value of its biological assets and a decline in profit sharing of its associates and joint ventures, according to the company.
Photo courtesy of CP Foods
