CPF Profits Soar as Sales of Poultry and Shrimp Jump
Bangkok, Thailand-headquartered Charoen Pokphand Foods Pcl (CPF) reported a surge in first-half profits as it rang up Bt 203.95 billion in sales, an advance of 13% over the previous year’s result. The bottom line showed a net profit of Bt 5.59 billion, up 110% over the same period in 2013. For the second quarter alone, the profit more than doubled to Bt. 3.55 billion (approximately $110 million).
The company registered gains in both domestic and international markets, which posted respective gains of 8% and 16%.
According to Adirek Sripratak, president and ceo, sales were buoyed by a recovery in the livestock business, which was negatively impacted by oversupplies last year. The company’s aquaculture sector also performed well, as frozen shrimp exports contributed to increased earnings. Furthermore, output from shrimp farms is expected to remain robust following a downturn due to EMS (early mortality syndrome) disease problems that have impacted Thailand and other countries in recent years.
Frozen chicken exports are expected to continue to be strong, boosted by greater demand from Japanese importers who have switched from Chinese to Thai suppliers following a poultry production scandal at a Shanghai Husi Food processing plant last month.
It is likely that pig meat exports will also rise significantly in the near term, due to the Russian import ban affecting producers in the EU, the USA, Canada and other countries that have slapped economic sanctions on Russia over its annexation of Crimea and support of rebels fighting Ukraine government troops.