Overseas sales help CPF grow in second quarter
The business posted total sales of Bt136.35bn, up 8% on the same period last year, driven by overseas sales rising by 16%. This was in contrast to domestic sales, which fell 5%. Its net profit rose by 45% to Bt5.89bn, due to the Vietnam market returning to stability after a poor half year.
Overseas operations in 16 countries accounted for 68% of the company’s total sales, while domestic sales accounted for 27% of sales and exports from Thailand 5%. The top three markets generating the main revenue for the business were Thailand (32%), China (26%) and Vietnam (16%). These markets accounted for 74% of CPF’s total sales.
Sooksunt Jiumjaiswanglerg, chief executive officer for agro-industrial business and co-president of CPF, said the company’s performance had been affected by an oversupply of pork and chicken in Vietnam.
“The price problem also affected Thailand in the middle of last year. However, prices for those two types of meat were better adjusted to cover costs in April last year. In particular, the price of pork in Vietnam has been corrected to normal levels, which was an important factor in achieving better results in Q2.”
Prices are set to continue to increase into next year. Pork and chicken prices have been rising continuously since Q1 and the higher prices will also be a factor in securing better results for the remainder of the year.
The company pointed out that a currency crisis in Turkey, which accounted for 3% of CPF’s total sales, was unlikely to affect its performance as the operation in Turkey was now focusing on domestic consumption. It added that the company had made some improvements in its financial structure in early 2018 and, therefore, the decline in Turkish currency could result in higher exports.
