2010 is another successful year for Charoen Pokphand Foods Public Company Limited and its subsidiaries. Consolidated sales revenue hit THB 189,049 million and net profit peaked at THB 13,563 million, a growth of 15% and 33% respectively over year 2009.  
 


Majority of the 15% growth in sales is a result of exceptional 55% growth from overseas operations, coupled with a 5% growth from operations in Thailand. The growth is in accordance to our strategy and business plan to grow and expand by investing in countries with high livestock farming potential and the increasing per capita consumption in those respective countries. As percentage of total company sales, overseas operations increased to 26%, from 19% in 2009 whereas operations in Thailand accounted to 74% from its previous 81%.

Besides expanding business internationally and domestically, our policies also dedicated to personnel development, production efficiency and work procedures improvement, cost reduction / profit improvement programs, and finance and capital management. All those with the increase in the share of associates’ profit contribute to the consolidated net profit of THB 13,563 million, an increase of 33% from 2009.

The Company paid the interim dividend for the first six months of operation on September 10, 2010 at THB 0.50 per share. The Board of Directors proposed annual dividend payment of THB 0.55 per share for approval at the Annual General Shareholders’ Meeting No. 1/2011 on April 20, 2011. Thus, total dividend for the year would be THB 1.05 per share, an equivalent of 55% of the consolidated net profit.

The Company anticipates fierce competition and increasing obstacles in 2011. Overall picture on the world economy is yet unclear as well as on Thai economy which very much depends on government’s policies and incentives and economic packages. World food shortages and the greenhouse effect on agricultural productions are major concern. As such, the Company gives importance to cost management and continual efficiency improvement. Continued emphasis will be given to expanding customer base which include overseas operations and exporting to more customers in existing countries and new markets. On food business, operating plans will include more value added products for various meat protein source, research and development on food items to meet demand of world consumers and increase food customer base. The Company will also continue to develop new distribution channels and promotes and increases more stores and outlets in existing channels such as CP FreshMart and Five Stars. With the aforementioned policy and plan, the Company foresees a satisfactory performance and growth in 2011.

In addition to emphasizing business growth, the Company gives great importance to good corporate governance, corporate social responsibility, and risk management. Last but not least, the Company has strong human resources and personnel development programs.

All of the above are critical components to enable success and sustainable growth of the Company.

In conclusion, the Company is grateful for the continual trust, confidence, and support and look forward to receiving the same consideration in years to come.