Company update: CPF's first quarter results jump 70%
Charoen Pokphand Foods (CPF) has reported a net profit of 3,479 million baht for the first quarter 2011, jumped 70% compared to the fourth quarter 2010 and increased 8% from the same period of previous year.
Adirek Sripratak, President and Chief Executive Officer of CPF, said the jump in net profit 70% from the fourth quarter 2010 was a results of an increase of gross profit margin from 13% in the fourth quarter 2010 to 16% in the first quarter 2011. Gross profit margin slightly declined compared to the same period of last year. However, with the efficiency of management expenses, net profit for the first quarter 2011 increased 8% compared to the same period last year.
Overseas operations were in line as expected, especially operations in India and Malaysia. With the latest investment in Cambodia on 1 April 2011, currently CPF has operations in 11 countries outside Thailand. Revenues from Cambodia’s operations will be recognised in the second quarter of this year. CPF emphasises on overseas business expansion and has been continually studying the opportunity for investment in new countries.
Even with the difficulty in business environment due to higher production cost, with the strategy to emphasise on food business, expansion of distribution channels and overseas business expansion, CPF foresees the opportunity of growth in its sales and net profit in the year 2011, said Adirek.
For overseas business expansion, CPF will emphasise on the investment in countries that have high demand for meat consumption.
Source: Charoen Pokphand Foods (CPF)
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