Charoen Pokphand Foods’ operating results for the first quarter 2011 jumped 70% compared to the fourth quarter 2010
Charoen Pokphand Foods Plc. or "CPF" reported a net profit of 3,479 million baht for the first quarter 2011, jumped 70% compared to the fourth quarter 2010 and increased 8% from the same period of previous year. Total sales revenue was 45,744 million baht. Sales from Thailand operations and overseas operations increased 4% and 7%, respectively. Sales from Thailand operations and overseas operations accounted for 74% and 26% of total sales, reports www.megafishnet.com with reference to CPF.
Mr. Adirek Sripratak, President and Chief Executive Officer of CPF, said the jump in net profit 70% from the fourth quarter 2010 was a results of an increase of gross profit margin from 13% in the fourth quarter 2010 to 16% in the first quarter 2011. Gross profit margin slightly declined compared to the same period of last year. However, with the efficiency of management expenses, net profit for the first quarter 2011 increased 8% compared to the same period last year.
Overseas operations were in line as expected, especially operations in India and Malaysia. With the latest investment in Cambodia on 1 April 2011, currently CPF has operations in 11 countries outside Thailand. Revenues from Cambodia's operations will be recognized in the second quarter of this year. CPF emphasizes on overseas business expansion and has been continually studying the opportunity for investment in new countries.
Even with the difficulty in business environment due to higher production cost, with the strategy to emphasize on food business, expansion of distribution channels and overseas business expansion, CPF foresees the opportunity of growth in its sales and net profit in the year 2011, said Mr. Adirek.
For food business, CPF will emphasize on the expansion of new market both in Thailand and overseas for its ready-to-eat products. For distribution channels, CPF will emphasize on the expansion of its own distribution channels, CP Freshmart and Five Stars. For overseas business expansion, CPF will emphasize on the investment in countries that have high demand for meat consumption. Finally, continual efficiency improvement and human resources development will increase CPF competitiveness in the world market. All of the above are critical components to enable CPF's sales revenues to increase by 10-15% compared to the year 2010, said Mr. Adirek.