CPF reported net profit 3,224 million baht, increasing 318% from last year.
Charoen Pokphand Foods Plc. or “CPF” reported operating results for the first quarter 2010 with total sales of 43,613 million baht or an increase of 25% from the previous year.
Sales from overseas operations increased 114% and Thailand operations increased 10%. Net profit surged to 3,224 million baht or an increase of 318% from the previous year. Net profit margin increased to 7% compared to 2% of the same period last year. Key factors driving CPF's net profit are an increased of associate income 200% and financial cost management efficiency enhancement.
Overseas operations – key drivers
Mr. Adirek Sripratak, President and Chief Executive Officer of CPF, said overseas operations especially in Turkey, India and Malaysia are key drivers of CPF operating performance for the first quarter of 2010. As a result of an improvement of overseas operations of both sales and profitability, sales from overseas business contributed to 25% of total sales for the first quarter of 2010.
Overseas operations will be a major key driver for CPF's operating performance in the future. Apart from Turkey, India and Malaysia which had a robust operating results in this quarter, CPF is increasing the capacity of operations in India, Russia and Philippines. Furthermore, CPF is in the process of doing a feasibility study for setting up companies in Kenya and Tanzania.
For the improvement of operating results of Thailand operations, especially for aquaculture business mainly as a result of the efficiency cost management, production management, inventory management, procurement and financial cost management. CPF will continuously emphasize on the efficiency enhancement policy in order to increase its competitiveness.
Furthermore, the associate companies such as CPALL and CP Vietnam also had robust operating performance in the first quarter of 2010 which resulted in an increase of CPF' associate income of 200%.
Mr. Adirek is confident that with the strategy to focus on food business and overseas business expansion, CPF's net profit for the year 2010 will increase from the year 2009. Finally, CPF is proud to be named in the 2010 Forbes Global 2000 List of the World's Biggest Companies.