Charoen Pokphand Foods Plc. or “CPF” reported net profit for the first six months of 2014 of Baht 5,596 million, an increase of 110 percent from the same period of previous year. Earning improved mainly due to Thailand operations and international operations recovery together with higher gross profit margin. CPF announced interim dividend payment of Baht 0.30 per share. With good news on chicken export to China and Russia, CPF will have positive outlook for the second half of 2014. In addition, CPF planned to use proceeds from CPP shares disposal to repay its outstanding debts.
CPF’s sales revenue for the first six months of 2014 was Baht 203,956 million, an increase of 13 percent from the same period last year in line with its target. Sales from Thailand operations and international operations increased 8 percent and 16 percent, respectively. Sales increased mainly due to a recovery of livestock business especially in Thailand and Vietnam which were affected by oversupply situation last year. An improvement of aquatic business overseas also helped boost CPF earning.
Net profit for the first six months of 2014 was Baht 5,596 million, increased 110 percent from the same period last year due to an increase of gross profit margin from 9 percent in 2013 to 14 percent in 2014. CPF’s Board of Directors approved an interim dividend payment for the operating results of the first half of 2014 at Baht 0.30 per share. The book closing date for the right to receive the dividend will be on 29 August 2014 (XD on 26 August 2014) and the dividend payment will be made on 12 September 2014.
Operating results for the first half of 2014 was in line with target. The livestock business has recovered continually from the end of last year while aquatic business in Thailand has slowly recovered. CPF expected to see an increase of shrimp farming in the second half of this year. CPF started to see a better prospect of aquatic business in overseas from an increase of its sales revenue, said Mr. Adirek Sripratak, President and Chief Executive Officer.
Operating results for this year should be in line with target. Operating results for the second half should outperform the first half due to an improvement of aquatic business and an increase of chicken export order from Japan as a result of damage of chicken meat from China. Moreover, Russia opted to ban imports of meat from EU and the United States will increase import from Asian meat producers and will have positive impact to CPF’s swine business in Russia.
In addition to an improvement of operating results, CPF has announced the disposal of 25 percent investment in ordinary shares of CPP, a listed company on Hong Kong Stock Exchange. The use of proceeds will be mainly for repayment of its outstanding debts which will help strengthen the financial position of CPF. These could ensure that the operating results for this year will be in line with target.
