Ready Meals

CPF Foresees Continued Growth in 2022 on Back of Economic Recovery

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Bangkok, Thailand-headquartered Charoen Pokphand Foods PLC (CPF), a major producer of frozen poultry, seafood, ready meals, pork and other value added products, recently reported Bt512,704 million in sales and Bt13,028 million in net profit was realized during fiscal year 2021. A dividend of Bt0.65 per share has been approved for the year.

Sales revenues dropped by 13% from 2020 due to the transfer of Chia Tai Investment Co., Ltd. from a subsidiary to an associate in December of that year. Excluding this change, CPF’s year-on-year sales revenue would have increased by 10%.

The Covid-19 pandemic remained a key factor that influenced operations in 2021, especially lockdown measures in Thailand and Vietnam that put pressure on consumer purchasing power and raised operating costs.

CPF’s profitability rate dropped below the 2020 level due mainly to a sharp decline in pork prices in Vietnam and Thailand during the latter half of 2021. Exacerbating the situation was an increase in the raw material costs for feed mill production. CPF’s investment gains also declined by Bt5,087 million from the 2020 level due to the poor performance of affiliates in China and Canada as well as CP All Public Company Limited.

CEO Prasit Boondoungprasert is convinced that the 2022 performance would show an improvement from 2021, on expectation that the economy will recover on the back of easing Covid-19 infection rates and demand will pick up. Meanwhile, the company emphasizes the enhancement of production and sales efficiency through technology and innovation for continuous improvement in competitiveness and the business operations have been adjusted to accommodate changing conditions.