CP Foods’ Overseas Operations Drive Solid Sales Results
Revenues generated by Bangkok, Thailand-headquartered Charoen Pokphand Foods PCL (CP Foods) amounted to Bt398.261 billion during the first nine months of 2018. The figure is up by 7% compared to the same period last year, thanks to growth in overseas business.
The Bangkok, Thailand-headquartered unit of the CP Group ranks as one of the world’s biggest producers of poultry, including frozen chicken products such as nuggets, tatsu bites, pre-fried wings, BBQ drumsticks and Korean-style fried chicken. It is also a major operator of shrimp farms, which provide raw material for a myriad of value-added shellfish products that range from breaded butterfly shrimp and tom yum fried rice with shrimps to prawn wonton ramen and shrimp wonton soup.
Sooksunt Jiumjaiswanglerg, chief executive officer for agro-industrial business and co-president at CP Foods, said foreign operations in the first three quarters of 2018 accounted for 67% of the company’s total sales, an increase by 12% year-on-year. Vietnam’s operation grew the fastest.
“The overseas investment is a part of the company’s sustainable growth strategy. CP Foods has invested in promising overseas markets for agriculture and food sectors, focusing on developing countries with a demand for high quality and modern farming,” he explained, adding that CP Foods currently operates in 17 countries worldwide.
The company has reported a nine-month net profit of Bt13.855 billion, rising by 7% due to a recovery in pork prices in Vietnam and Cambodia. As a result of good overseas results, CP Foods is confident of achieving this year’s target and has forecast that business will continue to soar in 2019, driven mainly by the overseas business.
Meanwhile, to guard against a possible slowdown in the global economy, the company has reduced management costs and lowered interest expenses via debentures.
Mr. Sooksant predicted that total sales for CP Foods will reach Bt600 billion within the next five years, as foreign operations evolve to account for approximately 75% of revenues.