Vietnam operation helps Thai food firm record strong profit hike

 

Hanoi (VNA) - Charoen Pokphand Foods (CPF) of Thailand and its subsidiaries have reported that their consolidated first-quarter net profit skyrocketed by 40 percent year on year to 4.279 billion baht (nearly 134 million USD) thanks to their pork business activities in Vietnam.

The combined revenue of the firm hit 125.286 billion baht in the first four months of 2019, up 4 percent from the same period last year.

Sooksunt Jiumjaiswanglerg, CEO of Agro Industrial Business and co-president of the CPF, pointed out that an outbreak of African swine fever in Vietnam could affect pork prices in the area. 

 

Farmers would rush to sell pigs over worries about the virus, which would initially cause an oversupply problem on the market, he said, adding the CPF expects to achieve its annual goals this year.

In terms of investment, the CPF is focusing on business expansion of value-added products, including the acquisition of HyLife, a Canadian pork producer.

The investment in HyLife is expected to allow the CPF to access premium pork markets such as Japan and China. The acquisition of HyLife is hoped to be completed in the last quarter of this year, Sooksunt said.

The CPF sees an opportunity to grow from its business activities abroad, including Vietnam, China, Russia, the US and the Philippines, and other markets.

The firm has set a target to reach 800 billion baht in revenue, up 6-7 percent per annum in the next five years.-VNA