Bangkok--11 Nov--CPF
CPF’s net profit for 9 months 2010 making a new record high 11,511 million baht increased 42% compared to last year. The CPF’s Board still has no consideration on resale of repurchase shares.
Charoen Pokphand Foods Plc. or “CPF”, Thailand’s leading agribusiness and food conglomerate, reported operating results for the first 9 months of 2010 with total sales of 141,767 million baht or an increase of 19%. Net profit surged to 11,511 million baht or an increase of 42% which is higher than the Company’s target as a result of outstanding operating performance of overseas operations.
Due to substantially growth of CPF’s overseas operations both in sales and net profit especially in Malaysia, India and Turkey, sales from overseas operations contribution increased to 27% of total sales. CPF’s expects its overseas operations to continuously growth in the next year. CPF plans to continuously expand its overseas business both in the existing countries and in new countries.
Mr. Adirek Sripratak, President and Chief Executive Officer of CPF, said the expansion of overseas business will enhance CPF’s business growth in the future. Every country that CPF currently invest in still have high potentially growth for animal farming business due to their high populations and low meat consumption per capita in each country. Mr. Adirek is confident that CPF’s overseas operation will grow about 20% per year.
For Thailand operation, shrimp business will continuously growth since Thai’s shrimp export is in demand of world market. In addition to the improvement of the company’s operations, CPF continuously emphasizes on its financial management. As a result of efficiency in financial cost management and foreign currency management, for the first 9 months CPF’s financial cost declined 11% compared to previous year and had gain on foreign currency exchange rate 773 million baht.
In addition, Mr. Adirek said the appreciation of Thai baht will have effect on Thai exporters. However, CPF has successfully negotiated with its customers and be able to adjust its product’s price. As a result, the appreciation of Thai baht had no effect on CPF’s operating results.
Furthermore, CPF’s strategy to move toward to food business and overseas expansion along with its commitment to corporate good governance and corporate social responsibilities will all contributed to sustain business growth and enable CPF to make consistent dividend payment to shareholders.
For the year 2010, CPF is confident that its sales target of 180,000 million baht will be achieved. For the year 2011, CPF expects its sales to increase about 5-10% and its net profit will be able to continue to improve from this year.
For the sale of share repurchase, the CPF’s Board of Directors still not consider about this subject since according to the law the Company still have 15 months left before making a decision on reduce registered capital. However, Mr. Adirek said both the resale of share repurchase and reduce registered capital will be benefit to CPF’s shareholders. The decision of the Board will be based on the cash management and capital requirement of the Company in the future.
For more information please contact:
CPF Corporate Communication and PR Office
Tel : 02-625-7343-5, 02-631-0641, 02-638-2713