Bangkok--9 Nov--CPF
CPF’s 3Q’11 net profit made a new record over 5 billion bahtReady meal significantly grew both in domestic and overseas market
Continued assistance were provided to the flooding areas Charoen Pokphand Foods Plc. or “CPF” reported sales revenue of 54,446 million baht for the third quarter 2011. Net profit reached a new record of 5,086 million baht. CPF is confident that its sales revenue for the year 2011 will reach 200 billion baht as target set even with flooding situation.
Mr. Adirek Sripratak, President and Chief Executive Officer of CPF, said that flooding crisis will continually caused enormous losses to Thai economy. Thus, CPF has set policy to provide assistance and alleviation to flood victim in general as well as CPF’s employees. For employees, CPF has provided sandbags, shelter and parking space for those within flooded areas. 2011 bonus was also paid in advance to help support extra expense occurred cause by flood. In addition, CPF has donated funds and distributed survival kits for flood victims through The Rajaprajanigroh Foundation under the Royal Patronage and various organizations such as the Prime Minister’ Office, the Royal Thai Army, the Royal Thai Navy, the Ministry of Interior, the Thai Red Cross Society and the Thai Listed Company Association. CPF also set up 14 food centers at flooding areas in 13 provinces to cook fresh food for flood victims and set asides 100 million baht budget for total aids. The flooding crisis slightly affected CPF’s operations. Up to date 15% of total outlets of CP Freshmart and Five Stars Business were temporary closed. There was no major damaged to CPF’s farms and plants. However, CPF’s logistic was affected in some areas. CPF has solved the problem by directly deliver products to its customers instead of distribute products through its distribution centers.
For the year 2011, CPF is confident that its sales revenue will reach over 200 billion baht as target set. For 9 months period CPF’s sales revenue was 153,420 million baht, up 8% year on year. Net profit was 13,434 million baht, up 17% year on year.
Domestic sales accounted for 61% of total sales, while export and overseas business accounted for 13% and 26% of total sales respectively. CPF has continued emphasize on overseas expansion and set the revenue target from overseas operation to be at least 40% of total sales revenue within 2014. CPF plans to expand its overseas business in existing countries such as India, Russia, Philippines and Malaysia and expand to new countries as well.
Feed business accounted for 38%, farm business accounted for 43% and Food business accounted for 19% of total sales. Sales of ready meal under CP brand had highest growth of 17% and expected to continue growing at this rate for the next 3 years which is in line with CPF’s strategy. CP ready meal sales significantly grew both in domestic and overseas market as a result of products popularity and new products launched to match with customer demand.