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CP Foods Profit Jumps 45 per cent Following

THAILAND - Charoen Pokphand Foods (CP Foods) has reported that its result operation in the third quarter of 2016 reached 122.549 billion baht, an increase of 10 per cent, while net profit jumped by 45 per cent to 5.184 billion baht compared with the same period of last year.

In addition, the company's total sales during first nine months this year achieved 344.839 billion baht, up by 11 per cent and net profit surged by 36 per cent to 12.965 billion baht.

CP Foods structure of sale generated by its overseas investment and export from Thailand accounted for 68 per cent of its total sales.

Its business in Vietnam showed a significant result operation when compared with others after stepping forward on its goal.

Sales in Thailand which accounted for 32 per cent of the company's total sales presented better operation compared with the same period of last year.

This good performance came from livestock business, particularly meats in domestic markets, which has turned back to usual situation after facing an oversupply problem last year.

Another important factor to drive growth came from the recovery of shrimp farming after EMS (Early Mortality Syndrome) has affected the industry for many years.

Moreover, the company's good expenditure management both in sales and overall management had brought down its financial cost. This is reflected in the net profit growing by 36 per cent during the first nine months this year.

Mr Adirek Sripratak, President and Chief Executive Officer of CP Foods, said that the company's result shows the company has stepped forward to its goal of succeeding in overseas business and investment. This will also be the key driving factor of the business's growth in the future.

This year, investment in China and Vietnam are still core countries to generate business growth. However, Russia, India and the Philippines will become potential countries to bolster CP Foods business to in the long run.

Under the company's idea to run food business from high protein meat quality with reasonable price, CP Foods key business expansion strategy is to export business into countries where agro-business industry has high potential.

Particularly, the company can help developing countries to learn more on modern farming by implementing advanced technology to ensure efficiency of production and high quality meat.

Moreover, CP Foods also still explores business opportunity in developed countries to investment in downstream processing and value-added foods. To achieve the strategy, the company has stepped forward on merger and acquisition.

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