Bangkok--13 May--CPF
Charoen Pokphand Foods Plc. or “CPF”, the leading agro-industrial and food conglomerate in Thailand, reported that for the first three months ended March 31, 2009 the Company’s net profit was 771million baht, increased 71% from the same period of 2008. Net profit margin improvement resulted from its success in production and financial management and improvement of aquaculture business both in Thailand and globally which have turned around to normal after slowdown for the past 1-2 years.
For the first three months ended March 31, 2009, CPF’s sales revenue was 34,779 million baht, slightly improved from the previous year as a result of a declining of sales revenue of some of its business units including livestock feed business and livestock breeder business. CPF’s profit margin improved from the previous year especially for its aquaculture business in both domestic operation and foreign operations as a result of the successful improvement of its production management, inventory management, account receivable management and financial management, quoted Mr. Adirek Sripratak, President and Chief Executive Officer of CPF.
Global financial crisis which started since last year has little impact on CPF’s export revenue as Thailand has received more order from Japan as a result of food safety issue in China last year. Moreover, CPF’s ready-to-eat product such as shrimp wonton which was started to export last year was well accepted in many countries especially in the USA. CPF’s ready-to-eat products sales revenue has improved continuously, said Mr. Adirek.
CPF’s Board of Directors on May 13, 2009 passed a resolution approving the Company’s to increase its investment in Charoen Pokphand (India) Private Ltd. (“CPI”), which currently CPF holds 71.2% of paid up shares, by 28.8%. The investment will make CPF to hold 100% of paid up share of CPI. CPI has strong financial position and high potential growth as India is a developing country which has high potential growth. As a result, CPF will have higher return by increasing its stake in CPI.
CPF expects its operating results for the next 9 months of 2009 to continuously improve from 1Q09 and should be better than that of 2008 as a result of the improvement of its efficiency and rapidly growth of sales revenue from the export of ready-to-eat products. Moreover, CPF expects its foreign operations especially Turkey to have better performance compares the previous year.