CPF posts 20% increase in revenue to B614bn in 2022
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CPF posts 20% increase in revenue to B614bn in 2022

An aerial view of CPF's processed chicken factory in Nakhon Ratchasima province.
An aerial view of CPF's processed chicken factory in Nakhon Ratchasima province.

Charoen Pokphand Foods Plc (CPF) reported sales revenue of 614 billion baht in 2022, a 20% growth from the previous year.

Net profit was 13.9 billion baht, an increase of 7%, thanks to rising sales in several countries and higher product prices. Excluding the 7.85 billion baht gain from an exchange of investment with Makro shares, an extraordinary item in 2021, CPF's 2023 net profit before extraordinary items would have increased 170% from the previous year.

CPF has investments in 17 countries, with exports from Thailand to more than 40 nations, driven by stronger food security.

Of the total sales revenue, 63% was contributed by overseas business entities, 31% from domestic operations, and 6% from exports.

Earnings before interest, taxes, depreciation, and amortisation (Ebitda) jumped 60% year-on-year, due to a 159% upward adjustment in the bio-product fair price.

Prasit Boondoungprasert, chief executive of CPF, attributed the financial improvement partly to the company's strict biosafety control. Such control enabled the group, including Thailand's operations, to grow despite the African swine fever outbreak.

In addition, CPF adjusted its business model in line with the new normal following the pandemic. Technology and innovation were embraced to enhance production efficiency while new distribution channels were introduced and suppliers were encouraged to add value to products and mutually create shared value.

CPF said it also strived to achieve sustainable growth by reducing coal use and switching to renewable energy. Its factory in Vietnam stopped using coal in June 2020, and all factories in Thailand quit coal in December 2022.

Mr Prasit added that challenges will remain in 2023 and put pressure on performance. The challenges include outbreaks of animal and human diseases, the consequences of international conflicts, an increase in loan rates, and economic downturns in many countries.

The company will adopt a more cautious move concerning operations and investment. With its strong foundation and cautious expansion plans, Mr Prasit said CPF was confident that its financial performance would remain strong in 2023.

CPF's board of directors resolved to ask for shareholders' approval at the first-quarter annual general meeting for a dividend payment of 0.75 baht per share for the 2022 performance.

The interim dividend of 0.40 baht was paid on Sept 14, 2022. The incremental 0.35 baht dividend will be payable on May 25, 2023. CPF will post the XD sign on May 8.

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