Tuesday, March 02, 2021

Pork shortage, mild impact from Covid-19 spikes CPF’s Q1 earnings by 43%

May 14. 2020
Prasit Boondoungprasert, chief executive officer of CPF
Prasit Boondoungprasert, chief executive officer of CPF
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By The Nation

Charoen Pokphand Foods Public Company Limited (CPF) reported Bt6.11 billion in net profits in the first quarter of this year, marking a 43 per cent rise from the same period last year, due mainly to African Swine Fever (ASF), which caused a shortage of pork supplies in many countries, especially Vietnam.

CPF, a leading agro-industrial and food conglomerate that operates in 17 countries and exports to more than 30 countries under its “Kitchen of the World” vision, reaped Bt138 billion in sales revenue in the first quarter, up by 10 per cent from the same period last year. Sales revenue from its overseas business in 16 countries, which accounted for 68 per cent of total revenue, rose by 12 per cent year on year, while operations in Thailand which constituted 32 per cent of total revenue witnessed a 6 per cent growth.

Prasit Boondoungprasert, chief executive officer of CPF, said the increase in net profit was because last year’s ASF outbreak had led to a significant drop in pork supplies and pushed up the average price of the commodity in Vietnam and Cambodia. 

Also, in the first quarter, many of CPF’s businesses met expansion targets, and the company started realising revenue from Hylife Co Ltd, a pork business operator in Canada.

Prasit said that though the Covid-19 pandemic has led to an economic slowdown and drop in people’s purchasing power, CPF’s businesses have only suffered a mild impact as its products are essential for daily life. 

He said safety measures have been strictly employed to cope with the outbreak, while employees have been assured of the best care. 

CPF is also doing its bit to help by supplying food to 200 public hospitals under the Public Health Ministry, to the families of 20,000 medical personnel and to the 20,000 overseas returnees. The company also recently issued more than 1 million discount coupons to medical volunteers to ease their cost of living, while delivering 25 batches of food to slums in the Greater Bangkok and provinces in cooperation with the Agriculture Ministry.

CPF's business plan has been reviewed in response to the Covid-19 outbreak to offer better marketing channels under the “new normal”, and expects the results for this year to exceed those of last year. 

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