CPF posts 139-per cent jump in Q4/2019 earnings, sees continuous growth
Charoen Pokphand Foods PCL (CPF) announced Bt140,794 million in sale revenue for the fourth quarter of 2019, representing a 2 per cent decrease year on year.
The revenue, however, would have increased by 9 per cent but for the baht's appreciation and enforcement of new accounting standards.
Of the total, revenue generated by overseas businesses accounted for 67 per cent , with the balance coming from sales of business units in Thailand.
Prasit Boondoungprasert, Chief Executive Officer of CPF, said the company's net profit jumped 139 per cent to Bt4,010 million in the quarter , from the corresponding period a year earlier, due mainly to the impressive performance of overseas businesses, particularly those in Vietnam.
CPF faced several challenges in 2019, especially fluctuation in foreign exchange rates and the African Swine Flu, which led to a drop in pork supply. However, the annualised net profit increased by 19 per cent on year to Bt18,456 million, thanks to operation improvement overseas , particularly in Vietnam.
Prasit said CPF expected its robust performance to continue in 2020, due to pork shortages particularly in China and Vietnam, which would raise prices above the 2019 level. CPF maintains its strategy to expand business in potential markets, so as to raise the revenue contribution by overseas businesses to 80 per cent of total in the next five years.
CPF has adopted three approaches to drive its strategy: raising the supply chain's value through innovations; adaptation to digital transformation; and creating added value to all stakeholders with best practices in sustainable development.
The Board of Directors on Thursday (February 2020) resolved to pay the dividend of Bt0.70 per share for 2019. As the interim dividend of Bt0.30 had been paid to shareholders on September 12 ,2019, the remaining Bt0.40 will come from after-tax earnings as dividend recipients are subjected to withholding tax under the criteria and conditions specified in the Revenue Code. Individual dividend recipients are not entitled to tax credit under the Revenue Code's Section 47 (2). The Board of Directors accordingly set the XD date on April 28 and the dividend will be payable on May 19, 2020.
