CPF guns for 75% foreign revenue share

CPF guns for 75% foreign revenue share

An artist's rendition of the CPF R&D centre in Wang Noi district, Ayutthaya province.
An artist's rendition of the CPF R&D centre in Wang Noi district, Ayutthaya province.

SET-listed Charoen Pokphand Foods (CPF), the agro-industrial and food conglomerate, has devised a three-pronged strategy to drive its corporate mission to become the "Kitchen of the World", aiming for overseas revenue to account for 75% by 2023.

The strategy comprises value creation, digital transformation and driving business sustainability, said chief executive Prasit Boonduangprasert.

The company has implemented several projects to create value for its food business, starting from chicken feed mills, to minimise the use of antibiotics by mixing probiotic material in chicken feed ingredients, Mr Prasit said.

Health-oriented soups have been developed for patients and elderly consumers, he said.

"We have also been investing in R&D for alternative proteins as well," Mr Prasit said.

CPF is open for merger and acquisition opportunities, especially in food-related businesses and the company has set a budget of 30 billion baht, excluding M&A, to invest overseas for business expansion.

The company has used digital and IT technology to help increase efficiency in terms of manufacturing, cost management and data storage, Mr Prasit said.

For instance, CPF adopted a farming technology to help automatically monitor daily growth of chickens, together with data analysis to identify illness.

For long-term business sustainability, the company has applied the circular economy principle that highlights efficient use of natural resources, zero-waste management and recycling throughout the production line.

Mr Prasit said revenue is expected to reach 800 billion baht by 2023, for average growth of 10%, driven by overseas business operations.

"We expect revenue from overseas operations to make up 75%, up from the existing 67%," he said.

CPF shares closed yesterday on the Stock Exchange of Thailand at 29.75 baht, unchanged, in trade worth 1.2 billion baht.

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