Bangkok--1 Jun--CPF
Charoen Pokphand Foods (Plc) reports consolidated revenue for Q1, 2016 together with its subsidiary (CPF) to 105,513 million baht, up 10% with net profit of 3,764 million baht, 0.51 baht/share, up 27% Y-O-Y.
The profit is attributable from sales of overseas businesses, sharing 60% of its total revenue. The turnover in 13 vibrant markets, including China, Vietnam, India, Russia, the Philippines and more grows 12%.
On the home front, domestic and export businesses currently shares 40% of its revenue also grow 6%. The growth is attributed by recovery of meat price after market glut in 2015.
CP Pokphand Co., Ltd. (CPP) – CPF subsidiary and Hong Kong based listed company – reports a remarkable improvement in financial performance. Also gross margin of livestock operation in Thailand has risen following a recovery of meat oversupply 2015. Shrimp industry starts to make a turnaround after the shrimp industry suffered a great deal from Early Mortality Syndrome (EMS) in the past few years.
Overall gross margin in Q1, 2016 increases to 16% vs 13% Y-o-Y, giving rise to net profit of 3,764 million baht, up 27% Y-0-Y.
Adirek Sripratak, President and CEO, views that the company will pursue two core strategies to maintain long-term growth.
First, it will focus on sustaining offshore growth by investing in vibrant agro industry and food markets. It will invest to grow the business organically or take up merger and acquisition to accelerate future business growth.
Second, it will add value to product taken into account needs and consumer behaviors. By and large, the business model is somehow replicable from the Thai market.
So far, it has invested in food businesses in all markets that it has already presence. Lately, the company's board of director has approved CPP, overseeing businesses in China and Vietnam, to invest in Hubei Chia Tai Co., Ltd which is the largest broiler integration in Central-West of China to put the business forward in food segment in China.
He is confident that the execution of the core strategies together with a turnaround of shrimp farming industry will give rise to better performance vs 2015. It foresees a turnover growth of 10-15% and all round gross margin improvement.