Thailand's CP Foods' sales grow in 2017 on back of overseas business
CPF Foods also registered a net profit of THB 15.259bn (US$550m).
“The company has expanded its business into potential countries with high growth opportunity, covering 16 countries now,” said Adirek Sripratak, chairman of CPF’s executive committee.
Last year, the company’s overseas investment and business contributed to 64% of its total sales.
Sripratak said that the company expects its overseas business to generate continued growth in the future, including in China, India, Vietnam, Russia and the United States.
However, Sooksunt Jiumjaiswanglerg, CEO of agro industrial business and co-president, said there were challenges in the pork business in Asia, such as the problem of falling prices.
Jiumjaiswanglerg said meat prices have dropped below production costs, especially in Vietnam.
Nonetheless, he predicted that prices would soon rise,
Investment in R&D and traceability
Sukhawat Dansermsuk, CEO of food business and co-president said that in 2017 the food industry enjoyed steady growth, especially in Thailand and China, but that continual innovation was crucial.
“Consumers nowadays are highly concerned not only about good taste but also food safety, throughout the whole process,” said Dansermsuk.
“To serve the demands, the company has invested both in a research and development centre and a traceable food processing system to ensure consumers of its quality of products.”
Furthermore, Jiumjaiswanglerg added that CPF has “strengthened its efficiencies both in management and operation”.
The company stated that it expects results to grow 5-8% this year.
In view of current results, CPF’s board of directors agreed in a recent Annual General Shareholders’ Meeting to pay shareholders a dividend of THB 0.25 per share, in addition to the THB 0.50 interim dividend that was paid on September 8, 2017.
CPF’s business is mainly centred upon its agro-industrial businesses, particularly in meat and processed foods.
