Bangkok--9 May--CPF
CPF’s oversea investment as expected, 1st quarter grows 6% As domestic economic affects a loss of Bt 1,135 m The company confidences that it will be better in the second half year
Adirek Sripratak, president and CEO of Charoen Pokphand Foods (CPF) revealed that the company had a net sale of 29, 077 million baht, up 6% from the same period of last year, which 69% from domestic operations, 17% from exports and 14 % from other operations in foreign countries. Furthermore, the investment in oversea has grows as target.
Due to the oversupply and less consumer’s spending that has made meat price decreasing especially in pork, broilers, and eggs, in addition, price of major feed material; corn, keeps rising with some effects from the currency exchange. Thus, CPF reports on the 1st quarter of 2007 losses 1,135 million baht.
Starting from the 1stquarter of 2007, the company adopted the change in accounting treatment for its investments in subsidiary companies, associates to record such investment using the cost method instead of the equity method in the separate financial statements in accordance with the Federation of Accounting Profession (FAP) Announcement No. 26/2006. This change had no effect to the consolidated financial statements of the Group but affected to the company’s financial statements. It resulted to a difference of the reported net profits between the separate financial statements and the consolidated financial statements. The significant differences were from the recognition of dividend received from its subsidiaries which allocated from the retained earnings of its subsidiaries in the company’s financial statement, which made the shareholders’ equity in the company’s financial statement after this change in accounting policy was not much different from the method previously adopted.
“With the current of the world’s and Thailand’s economic condition and the rising cost of feed material, most of meat producers in many countries have faced with the same challenge as Thailand. Everyone has to adapt with this change which CPF will keep creating the company’s branding and enhancing more on a food safety. Besides, the company will launch more choices of ready to eat meal menus in order to meet with consumer’s demand and expand more distribution channels.
For international investment, CPF has received a good feedback especially in the aquaculture business in India, Malaysia, and China. In addition, for Turkey business, it showed a jump-up growth. Therefore, the overall result of the company operation will be much better in the 2nd quarter of this year, said Adirek.”
CPF Information Office
Tel. 0-2625-7344-5
Sukanya Isaranuwatchai (Or)
CPF Information Office
Tel. 0-2625-7344-5
Fax. 0-2638-2280
Email: [email protected]