Bangkok--8 Nov--CPF
CPF expands its operations to Laos, reaffirming its regional leader status. CPF announces the 9 month period revenue of Bt91,909 million, increases 10% YoY, with Bt0.05 dividend per share announcement.
Mr. Adirek Sripratak, President and CEO of Charoen Pokphand Foods Plc. (CPF), revealed after November 8, 2006 Board of Directors’ meeting that the Board of Director approved the establishment of C.P. Laos Company Limited by the end of year to operate animal feed and farming businesses in Lao People’s Democratic Republic (Lao PDR).
The registered capital is set at US$3 million or Bt114 million (calculated base on November 7, 2006 exchange rate). CPF will invest through its subsidiary, Charoen Pokphand Northeastern Plc. (CPNE), in which CPF holds 99.61% directly.
“Expansion to overseas countries is the ongoing strategy that CPF engages continuously. After thoroughly considering each country for appropriateness and growth opportunity, we go in with our business expertise and know-how.
In the past 5 years, CPF has made several investments in overseas countries. The first we engaged was the investment in livestock business in Turkey, followed by investment in aquaculture business in China. In addition we increased our stake in aquaculture business in India. We invested in aquaculture business in Malaysia. And recently, the Board of Director approved to invest in livestock business in Russia.
All investments that CPF engaged in the past have yielded good results as expected, especially aquaculture business in China, India, and Malaysia. Lao PDR is another country that our team concluded from the study that there is a great potential. So we decided to go in.” said Mr. Adirek.
During the same day, CPF announced the 9 month period revenue of Bt91,909 million, increased 10% over the same period of last year. The increase in revenue was mainly from aquaculture business in overseas countries e.g. India, China, and Malaysia. Meanwhile livestock business has been adversely affected from lower domestic meat prices compared to last year.
Net profit for the 9 month period was Bt2,254 million, decreased 63% over the same period of last year. The main reason was lower gross profit margin of 14%, compared to 18% of last year, caused by lower average meat prices of livestock business in Thailand and Turkey compared to last year. In addition, there was gain from divestment of Bt964 million booked in the same period of last year.
For the 3rd quarter results, CPF booked revenue of Bt32,584 million, up 6% over the same period of last year, with a net profit of Bt681 million, down 67% over the same period of last year. The key reason behind the lower net profit was lower domestic meat prices, especially chicken prices, compared to the same period of last year.
Mr. Adirek commented on domestic chicken prices at farm that there has been an improvement in chicken prices in the past month. Latest prices have been around Bt30-32 per kilogram. Whereas chicken prices in Turkey have started to come back to normal level. This should be reflected positively in the 4th quarter operations.
Lastly the Board of Director approved an interim dividend for the 3rd quarter results of Bt0.05 per share. The dividend payment will be made on December 7, 2006 to the shareholders whose names appear in the share registrar book on November 23, 2006 at 12.00 noon ( XD date on November 20, 2006). With 2 previous interim dividend payments, total interim dividend for 9 month period will be Bt0.17 per share. IMPORTANT.