Charoen Pokphand Foods Plc (CPF) reported a 504% increase in net profit to 7.3 billion baht in the third quarter this year, marking a strong recovery from the previous year's loss.
The company and its subsidiaries, operating in 17 countries and shipping to more than 50 markets worldwide, posted total sales of 143 billion baht, with 62% from international operations and 38% from Thai operations.
Net profit rose to 7.3 billion baht, a turnaround from a loss of 1.8 billion baht in the third quarter of 2023.
The recovery stems from enhanced gross profit margins and a significantly stronger performance from joint ventures and partnerships, which had profit contribution increase nearly sixfold.
CPF's gross profit margin rose to 15.4% in the quarter, up from 10% year-on-year.
This robust performance was driven by a recovery in Vietnam's pig market, with prices climbing based on supply adjustments following previous outbreaks.
Successful cost optimisation across global operations was another key factor, thanks to enhanced production efficiency and lower animal feed raw material prices compared with last year.
The company attributed the uptick to successful development and sourcing of cost-effective alternative raw materials, while maintaining nutritional standards.
Profit from joint ventures and partnerships was 3.66 billion baht, an increase of 592% from the previous year.
The primary factors were the improved performance of joint venture companies engaged in animal and pig farming in China, where pig prices rose and production costs decreased year-on-year.
The performance of CP All Plc also improved for the period year-on-year.
Prasit Boonduangprasert, chief executive of CPF, said the improvement in this year's performance resulted from collaboration between management and employees to reverse losses posted in 2023.
This was achieved through business restructuring, strategic adjustments to respond to economic conditions, and adapting to consumer behaviour in various regions, he said.
"Notably, the collective effort in managing costs and expenses more efficiently has positioned the company with a strong competitive foundation and the ability to sustain profit growth from this year onwards," said Mr Prasit.
Since the onset of the pandemic, the global economy has remained uncertain and volatile in many areas, with sociopolitical conflicts in several regions, he said.
As a consequence, the company adjusted its operations and competitive strategies to keep pace with changing consumer behaviour, while acting to mitigate the impacts of global warming, said Mr Prasit.
CPF's business approach centres on creating an innovative organisational culture by integrating technology, science, and sustainable business growth concepts, he said.
This strategy aims to enhance efficiency and reduce environmental impacts while creating shared value with society, said Mr Prasit.
The company wants to find ways to use fewer resources while producing more, ensuring its products are of the highest quality and value, he said.
CPF uses processes that support the growth of the entire supply chain, a concept referred to as "sustainovation", said Mr Prasit.
This approach enables the company to remain competitive and ensures stable growth in the future, he said.
