Overseas sales lift CPF in Q2

Overseas sales lift CPF in Q2

SET-listed Charoen Pokphand Foods Plc (CPF), an agro-industrial and food conglomerate, posted total sales of 136.4 billion baht in the second quarter amid buoyant overseas activity.

Total sales rose by 8% year-on-year, with overseas sales up 16% year-on-year.

CPF's domestic sales, however, fell by 5% year-on-year between April and June.

At present, the company's overseas operations in 16 countries account for 68% of total sales, with domestic sales making up 27% and exports from Thailand logging 5%.

The top three markets by revenue generated are Thailand (32%), China (26%) and Vietnam (16%).

Net profit, meanwhile, jumped 45% year-on-year and 93% quarter-to-quarter to 6 billion baht in Q2. The surge stemmed largely from a bounce-back in Vietnam business.

Sooksunt Jiumjaiswanglerg, chief executive for agro-industrial business and co-president of CPF, said the company's performance was previously hurt by an oversupply of pork and chicken meat in Vietnam.

The price problem also hit the company's domestic operations in the middle of last year, Mr Sooksunt said.

He said pork prices in Vietnam returned to normal levels, an important factor contributing to robust operating results in the second quarter.

The forecast calls for increasing prices to carry on into next year, Mr Sooksunt said.

He said the currency crisis in Turkey, a country that accounts for 3% of CPF's total sales, is unlikely to affect the company's performance, as the company's Turkey operations focus on domestic consumption.

CPF also made some improvements in its financial structure in early 2018, so the weakening lira may result in better exports, he said.

CPF shares closed yesterday on the Stock Exchange of Thailand at 25.75 baht, up 85 satang, in trade worth 1.8 billion baht.

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