CPF approves capital bump

CPF approves capital bump

Charoen Pokphand Foods Plc (CPF), the SET-listed subsidiary of agribusiness giant Charoen Pokphand Group, says its board approved an increase of the company's registered capital to 9.29 billion baht from 7.74 billion baht.

Available proceeds will be used to repay debts and finance future investment.

According to the company's statement to the Stock Exchange of Thailand, CPF's board, which met on Thursday, approved the increase in registered capital by 1.54 billion baht to 9.29 billion baht by issuing 1.54 billion new ordinary shares with a par value of one baht per share.

The new ordinary shares are to be sold to existing shareholders at a ratio of five existing ordinary shares to one newly issued ordinary share at 25 baht each. The subscription dates are scheduled for July 24-31, 2017.

CPF said in its statement that it will use the proceeds to repay loans and/or debentures of 27 billion baht by 2018 and finance future investment of 11.71 billion.

CPF recently announced it would invest 25 billion baht this year, mainly 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 revenue growth of 8-10% this year, boosted by overseas operations and recovering chicken and shrimp prices. CPF's 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 overseas sales surged by 12% to 286 billion.

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

CPF said yesterday that its first-quarter revenue grew by 13% to 119.61 billion baht, with net profit up 5% year-on-year to 3.95 billion.

CPF shares closed yesterday on the SET at 24.70 baht, down 30 satang, in heavy trade worth 3.11 billion baht.

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