CPF invests B25bn in foreign work

CPF invests B25bn in foreign work

Charoen Pokphand Foods Plc (CPF), the SET-listed subsidiary of agribusiness giant Charoen Pokphand Group, is investing 25 billion baht this year to accommodate its overseas investment expansion, aiming to enlarge foreign revenue over the next five years.

Adirek Sripratak, CPF's president and chief executive, said more overseas investments will help ensure sustainable revenue growth.

The company wants to raise revenue from overseas operations over the next few years to 70% from 68% now, sustaining average annual revenue growth of 8-10% during the period.

Mr Adirek said CPF expects sales revenue to grow by 8-10% this year, boosted by overseas operations and recovering chicken and shrimp prices.

"Chicken prices are anticipated to rebound strongly this year after the bird flu outbreak really affected the industry the last two to three years," he said.

"Shrimp prices are also expected to grow after the industry was plagued by early mortality syndrome (EMS), only starting to recover last year."

He said low pork prices, particularly in Thailand and Vietnam, are a cyclical phenomenon, but they had put pressure on the company's operating performance. Mr Adirek expects pork prices to recover in the second half of 2017.

CPF reported 33% profit growth to 14.7 billion baht last year, up from 11.1 billion in 2015.

The higher profit was largely attributed to a growing Thai livestock operation, which returned to a normal operating environment, and the shrimp industry's recovery after the EMS crisis.

Also contributing to the profit gain were subsidiaries in Russia and Cambodia, as well as efficient expense management.

CPF said sales revenue increased by 10% year-on-year in 2016 to 464 billion baht.

Sales from Thai operations rose by 7% to 179 billion baht, while those from international operations surged by 12% to 286 billion.

CPF shares closed yesterday on the Stock Exchange of Thailand at 26.50 baht, up 25 satang, in heavy trade worth 1.27 billion baht.

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