Summary of CP Foods FY2025-2026 plans:
- CP Foods reported lower revenue but significantly higher profit growth for FY2025
- Revenue decline linked to FX impacts yet growth was seen in terms of local currency, indicating a positive performance
- Operational efficiency and market pricing improvements strengthened overall profitability
- Global network supports localised production reducing geopolitical and supply challenges
- This localised manufacturing strategy is emerging as a crucial one for the company to overcome major global issues in FY2026
CP Foods recently published its FY2025 full-year financial results, reporting a -2% year-on-year decline in revenue to THB571.1bn (US$17.6bn) but 29% year-on-year growth in profits to THB25.2bn (US$775.8m).
The firm attributed the revenue decline to foreign currency FX translation, citing a 3% increase in revenue if calculated in local currency, as well as various positive drivers leading to its healthy profit growth.
“Some key factors that helped CP Foods to grow profitability this past year include enhanced operational efficiency and cost reductions, lower global soybean meal prices and the improved average selling meat price in the region,” CP Foods Head of Corporate Affairs and Investor Relations Kobboon Srichai told the floor when announcing the results.
“We have continued to focus on our core business pillars including expansion of our portfolio towards innovative value-added products, digital transformation and globalisation to generate growth.”
Looking to the coming year, the firm has committed to utilising its vast global network to overcome current geopolitical and supply chain challenges, believing that its current setup stands it in good stead.
“We are targeting a 5% increase in sales volume for the entire business, and this requires not only more value-added innovation but also to strengthen our market presence across the various countries we are in – Currently we have operations in 17 countries worldwide, with Asian bases such as China, India, and Malaysia, North American ones in the US and Canada, a South American one in Brazil and European ones in UK, Russia, and Belgium,” she added.
”CPF adopts a localised production model in all other markets outside of our home base Thailand, producing and selling locally within each market to ensure food security and meet local consumer needs.”
From these 17 operation bases, CP Foods caters to four billion consumers across over 50 global markets, covering not only finished processed food products but also pork, poultry, aquaculture and feed items.
This is the model the firm intends to continue tapping on to overcome major challenges facing the global food and beverage industry currently.
“We see key challenges for FY2026 being the macroeconomic and consumption outlook as well as the geopolitical situation and US reciprocal tariffs,” she said.
“Focusing on a localised production model enables us to [overcome some of these hurdles directly], although we do also need to watch out for other challenges such as animal disease outbreaks, meat supply and demand dynamics, as well as currency volatility.”
Finished products still key for growth
In addition, CP Foods has renewed its focus on value-added processed food products due to the strong potential for growth in this category, especially in China.
Based on its results from the last financial quarter, its feed and meat businesses saw declines of -4% and -8% respectively, but its food business successfully grew by 1% overall, one of the few positive performances in the last quarter.
This was largely contributed by a 3% sales growth in the local Thai market as well as a strong 15% growth in China, indicating the rising role of value-added products to attract consumers in these markets.
“Our portfolio expansion towards innovative products and services is crucial to serve rising consumer demands such as for convenience and time-saving,” Srichai added, citing key new products such as frozen, ready-to-eat (RTE) Thai meals marketed under the Kitchen Joy brand in Europe and CP Red sterilised sausages in Vietnam.
