THAILAND, Bangkok. Charoen Pokphand Foods PLC (CPF) reported Bt 6,062 mill. earnings in the third quarter, an increase by 23% from the same period last year. The earnings increased despite lower sales revenue.
In the quarter, sale revenue totaled Bt 132,597 mill., declining 6% on quarter. Excluding impacts from the strengthening of Thai baht as well as the adjustment of financial reporting standards (TFRS), sale revenue would have increased by 8% on year.
The Chief Executive Officer of CPF attributed a drop in sale revenue to the stronger baht as well as changes in TFRS. In the quarter, overseas businesses contributed 67% of total sale revenue. The rest was contributed by the operations in Thailand, 27%; and exports from Thailand, 6%. The company maintains the strategy to further expand businesses in potential markets and targets to raise overseas sales as well as exports to 80% of total sale revenue in the next 5 years.
In the third quarter, the net profit surged 23% on year thanks mainly to a recovery in the swine industry following a glut that pressured down pork prices. The net profit was also driven by the better financial results of overseas aquaculture business as well as investment divestiture.
The CEO is confident that CPF will meet financial targets in 2019, as earnings in the fourth quarter is expected to improve in line with an increase in pig prices. The annualized earnings in 2020 are also expected to further increase as a result of the strategy to add value of existing businesses as well as an improvement in economic conditions.