CPF Boosts Overseas Business

Adirek Sripratak, the company's CEO and president, said: "We are committed to investing 6 billion baht a year over the next five years to expand production of animal feed and livestock at home and overseas. Over 60 per cent of that amount will go overseas, largely to expand existing operations in Russia, India, Turkey, the Philippines, Malaysia and some African countries."

According to Bangkok Post, overseas operations played a vital role in the company's sales growth for the first six months of the year, with that sector surging 91 per cent. Thai operations grew at the relatively slow pace of seven per cent.

For the first half of the year, the company reported total sales of THB91.47 billion, an increase of 21 per cent from the same period last year. Net profit for the period rose 82 per cent to THB7.22 billion and was partially supported by income distribution from affiliates such as CP All Plc, the operator of 7-Eleven convenience stores, in which CPF holds 27 per cent.

For the second quarter, the company posted a net profit of THB4 billion, a rise of 25.3 per cent over the same quarter last year on total revenues of THB48.49 billion, an increase of 18.47 per cent.

Mr Adirek said the surge in sales revenue could be attributed to higher food product sales and rising overseas income.

The shrimp business benefited from a global decline in production caused by erratic weather conditions and the oil spill in the Gulf of Mexico.

As of the second quarter, overseas operations made up 27 per cent of the company's sales, with exports accounting for 13 per cent and domestic sales 60 per cent.

According to the company's five-year plan, CPF aims to raise the revenue contribution from overseas operations to 40 per cent with exports making up 20 per cent and domestic sales 40 per cent, reports Bangkok Post.

Mr Adirek said the company expects to post a record profit of more than THB12 billion this year.

CPF reported a record net profit of THB10.19 billion for 2009, up by 226 per cent from the previous year, with sales revenue up by six per cent to THB165.06 billion.

Revenue will be close to THB180 billion in 2010, and CPF expects it will rise by an average of 10 per cent over the next five years.

Mr Adirek added: "We have done better than targeted with increasing revenue from overseas businesses. Our investments in over 10 countries will pave the way for future growth."

Prospects also look promising for the second half, he said, adding a profit growth target of 20 per cent this year will be achievable.