Bangkok--4 Aug--CPF
CPF announced 6M06 sales of 60 billion Baht with a net profit of 1,573 million Baht. Still maintain 2006 sales target of 130 billion Baht driven by expanding Aquaculture business. Announced dividend for 2Q06 of 0.07 Baht per share
Mr. Adirek Sripratak, CEO of Charoen Pokphand Food (CPF), revealed 6M06 results with a total sales of 59,325 million Baht, an increase of 13% from the same period last year, and a net profit of 1,573 million Baht. The second quarter net profit was at 1,023 million Baht, up by 86% from the previous quarter. The quarter on quarter increase in net profit was due to better Aquaculture business both in Thailand and overseas.
Mr. Adirek added that overall operations should be better in the second half of the year, enabling the company to achieve our sales target of 130,000 million Baht. Aquaculture business still expands as planned, especially in India and Malaysia. Feed business in Malaysia started operation in the end of the second quarter and this should contribute to sales in the second half of the year.
“2Q06 net profit increased from the first quarter significantly. This was mainly driven by strong Aquaculture business especially in India, which should continue into the second half of the year. In addition, the new animal feed plant in Malaysia, which commenced operation in the end of the second quarter, along with the expansion into processed and exported business, that is expected to complete within 1-2 months, should also add to the second half of the year. Lastly the investment in Russia should begin to yield return by the end of 2Q07”
In the meantime, CPF announced a dividend payment of 0.07 Baht per share from 2Q06 operations. The dividend will be paid on September 1st, with the closing date on August 18th, 2006 (SET will post XD sign on August 15th, 2006).
The key reason for a 61% decrease in 6M06 net profit was mainly due to spreading of the Avian flu globally, which adversely affected prices of meat both in domestic market, Turkey, as well as other countries. Furthermore, CPF booked a divestment gain of 812 million Baht in 2Q05.
Mr. Adirek added further that CPF will continue its course on branding strategy on cooked and ready-to-eat products along with marketing campaign to enhance the brand image both domestically and internationally. For domestic market, CPF introduced cooked and ready-to-eat products to the market, for example, shrimp wonton through seven-eleven shops and a newly launched cooked shrimp under brand CP. In addition, CPF also introduced Japanese style sausage under brand CP-Yonekyu into the market after joint venturing with Yonekyu Corporation Japan to develop products for both Thai and Japanese markets.