Thai food giant Charoen Pokphand Foods PCL (CPF) reported an increase in its net profit in the first quarter of this year, mainly due to higher earnings from its pork business, the company said in a statement on 14 May.
The company’s net profit rose 43 percent year-on-year to THB 6.11 billion (USD 190 million, EUR 176 million) from January to March due largely “to the African swine fever (ASF) that caused a significant shortage in pork supplies and a spike in pork prices in many countries, particularly Vietnam.”
The company’s sales revenue also surged 10 percent year-on-year to THB 138.14 billion (USD 4.3 billion, EUR 3.98 billion) in the first three months of 2020.
Its overseas businesses, which contributed 68 percent of total sales, saw sales value go up 12 percent from January to March last year. The sales value generated by operations in Thailand grew 6 percent year-on-year in the first quarter, the company said.
“The COVID-19 pandemic led to the economic slowdown and lower purchasing power, but CPF's businesses witnessed only a mild impact as its products are essential for everyday life,” CPF CEO Prasit Boondoungprasert said in the statement.
CPF said it has reviewed the business plan to reflect changes caused by the outbreak of COVID-19 “to offer better marketing channels under a ‘new normal.’”
In response to the pandemic, CPF has set its investment at THB 20 billion (USD 622.3 million, EUR 576 million) this year, lower from the usual annual goal of THB 25 billion (USD 778 million, EUR 720 million). Its investment will focus on improving digital systems and food delivery by motorcycles, the Bangkok Post reported 15 May.
The company hopes its revenue will grow more than 10 percent in 2020 from the THB 554 billion (USD 17.2 billion, EUR 16 billion) seen last year.
CPF has targeted to increase its business by between 8 to 10 percent from 2019 through 2023, with expected revenue of THB 800 billion (USD 25 billion, EUR 23 billion) in 2023. Its international operations are set to contribute 75 percent of CPF’s total revenue, up from the expected target of 68 percent this year, according to the Bangkok Post.
The company operates in 17 countries and sells products, ranging from pork and chicken to seafood, to over 30 countries.
