Bangkok--26 Feb--CPF
Charoen Pokphand Foods Plc. or “CPF” reported its sales for 2012 at 357,175 million baht, jumped 73% from the previous year. Net profit was 18,790 million baht or 2.59 baht per share. In addition, CPF announced its dividend payment for the second half of 2012 at 0.50 baht per share.
Mr. Adirek Sripratak, President and CEO of CPF said in addition to the volatility in world economy and fluctuation of economy in many countries, there are many external factors that present challenges to the agro-industrial and food business in 2012, including meat oversupply which caused meat prices to drop significantly since the beginning of 2012. The rising price of raw materials for animal feed production resulted from drought crisis in the United States in the late third quarter, which led to higher production cost of meat and loss of meat producers. Moreover, new type of shrimp disease has occurred in Thailand in late 2012 of which presently, the government and CPF are developing the prevention measures. As a result, CPF’s net profit for the fourth quarter of 2012 decreased significantly from the previous year to 238 million baht. However, CPF believe that the situation has already bottomed out.
Furthermore, as a result of the acquisition of CPP or C.P. Pokphand Co., Ltd., a company listed in the Stock Exchange of Hong Kong in the beginning of 2012, which engages in feed business in China and the agro-industrial business in Vietnam. The Company's operating results have made the leap and continued profitable.
The company is targeting sales in the next 5 years at 700,000 million baht, increasing 100% from 2012 or an average growth rate of 10-15% per year, driving mainly by the growth of the business in Emerging Market and food businesses.
The Board of Directors approved dividend payment for the second half of 2012 at 0.50 baht per share. Interim dividend was paid in September 2012 at 0.60 baht per share. CPF’s total dividend payment for 2012 was 1.10 baht per share. In this regard, the share register book will be closed for the right to receive the dividend on 9 May 2013 (XD on 3 May 2013).