CPF ‘continues to explore investment opportunities in developed countries’
CHAROEN Pokphand Foods (CPF) is still exploring opportunities in developed countries to invest in downstream processing and value-added foods, president and chief executive officer Adirek Sripratak said in a press release.
To achieve the strategy, the company has stepped forward on mergers and acquisitions, the release issued late on Monday said. M&As enable the company to create business faster than setting up new plants.
For a business to show acquisition potential, it has to be in line with CPF’s policies of good management, fair price and good value, he said.
CPF’s key expansion strategy is to expand into countries where agribusiness has high potential. In particular, the company can help developing countries learn more about modern farming by implementing advanced technology to ensure production efficiency and high-quality produce.
Currently, CPF’s sales generated by its overseas investments and exports from Thailand account for 68 per cent of the total.
Its business in Vietnam has shown significant progress compared with other CPF overseas ventures. On the other hand, sales in Thailand, which accounted for 32 per cent of the company’s total sales in the third quarter, also improved over the same period of last year. This good performance came from livestock business, particularly as the oversupply of meats in the domestic market last year returned to normal.
Another important factor was the recovery of shrimp farming after being affected by early mortality syndrome for years.
On Monday, CPF reported that revenue in the third quarter reached Bt122.549 billion, an increase of 10 per cent year on year, while net profit jumped by 45 per cent to Bt5.184 billion.
Total sales during the first nine months of this year were valued at Bt344.839 billion, up by 11 per cent, while net profit surged by 36 per cent to Bt12.965 billion.
Adirek said the company’s good expenditure control both in sales and overall management had brought down its financing costs.
He added that the company’s operating results had stepped forward as overseas business and investment succeeded as planned.
This year, CPF’s operations in China and Vietnam will continue to be key to the company’s business growth.
However, Russia, India and the Philippines have high potential to bolster CPF’s business in the long run, he added.
