Charoen Pokphand Foods PCL (CPF) saw its sales revenue and profits rise in 2020 thanks partly to the improvements of its shrimp aquaculture segment in Thailand.
CPF’s sales revenue surged 11 percent year-on-year to THB 589.7 billion (USD 19.6 billion, EUR 16.1 billion) in 2020, with 69 percent of the sales generated by its international operation and 31 percent by the business in Thailand, CPF said in its 2020 results statement, released on 24 February.
The company’s gross profit margin last year increased to 18 percent, from 14 percent in 2019. Its earnings before interest, taxes, depreciation and amortization (EBITDA) soared 72 percent year-on-year to THB 81.69 billion (USD 2.7 billion, EUR 2.2 billion) while the net profit jumped 41 percent from 2019 to THB 26 billion (USD 864 million, EUR 711 million).
The improved performance was mainly due to an increase in swine prices, notably in Vietnam, China, Thailand, and Cambodia, where the swine population has declined because of the African swine fever. CPF’s aquaculture segment in Thailand also proved profitable in 2020, it said.
“Thai aquaculture business has also improved due from adjustment in marketing strategy and efficiency improvement in operations which has resulted in a significant increase of shrimp sales in Thailand,” it said.
CPF CEO Prasit Boondoungprasert attributed the company’s profitability last year to the application of the company’s technology and innovations, biosecurity integration, and the successful containment of the spread of diseases on swine and shrimp.
CPF said the modification of its distribution channels as well as the application of advanced technology have helped it reduce negative impacts from the pandemic, which significantly hurt consumer purchasing power last year.
For 2021, the company expects consumer demand will improve as the pandemic is expected to ease, resulting in higher uptake of CPF’s food products in both Thailand and other markets.
“Coupled with the company’s capacity expansion and technology-based production efficiency enhancement, CPF is confident of continual competitiveness and expects the continuation in impressive results in 2021,” the company said.
Photo courtesy of CP Foods
