Bangkok, Thailand-based CP Foods saw its revenue hit an all-time high in the second quarter, but its net profits declined.
The company’s total revenue over April-June was at THB 155.996 billion (USD 4.4 billion, EUR 4.34 billion), an increase of 20 percent from last year, CP Foods said in a statement on 15 August.
Of that total, its operations in Thailand brought revenues worth THB 50.98 billion (USD 1.44 billion, EUR 1.42 billion), up 17 percent year-on-year. Revenue from its overseas operations totaled more than THB 105 billion (USD 2.96 billion, EUR 2.92 billion), up 22 percent from a year earlier. CP Foods attributed the revenue increases to heightened consumer demand following the ease of COVID-19 restrictions in many markets.
The company said its gross profit in the quarter grew 7 percent to THB 22.624 billion (USD 638 million, EUR 630 million). However, its net profit went down 11 percent year-on-year to THB 4.208 billion (USD 118.8 million, EUR 117.2 million) mostly because lower pig prices and rising raw material costs have negatively affected its joint venture in China.
In its investor presentation on 16 August, CP Foods said its revenue in the first half rose 18 percent to THB 294.883 billion (USD 8.32 billion, EUR 8.21 billion) but its net profit fell 40 percent to THB 7.05 billion (USD 199 million, EUR 196.2 million).
A breakdown of its sales in the first six months showed that CP Foods’ revenue from its aquaculture operations in Thailand edged down slightly 1 percent to THB 14.307 billion (USD 403.7 million, EUR 398.2 million). However, revenue from its overseas aquaculture segment surged 24 percent to THB 29.2 billion (USD 823.9 million, EUR 812.6 million). That total included THB 11.514 billion (USD 324.7 million, EUR 320.3 million) from its aquaculture operations in Vietnam, up 11 percent year-on-year; THB 345 million (USD 9.7 million, EUR 9.6 million) from its aquaculture operations in China; and THB 17.341 billion (USD 489.3 million, EUR 482.7 million) from other countries, a growth of 34 percent year-on-year.
CP Foods CEO Prasit Boondoungprasert said in the statement that the company is likely to maintain its growth momentum in the second half of this year thanks to “the relaxing of COVID-19 restrictions in many countries, recent increase in pig prices in China and CP Foods’ emphasis on operational efficiency to maintain cost competitiveness”.
But the company also said it could face several challenges in the second half, including the impacts of the COVID-19 pandemic, geopolitical conflicts, the rise in the raw material costs, and the outbreak of African swine fever in numerous countries.
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