CPF predicts 2010 profits will surge to top B10bn
Charoen Pokphand Foods Plc, the SET-listed flagship of the Charoen Pokphand Group, remains bullish on its bottom-line 2010 prospects after a surge in net profits expected to top 10 billion baht this year.
Adirek Sripatak, president and chief executive officer of CPF, said the company next year would focus mainly on profit rather than driving sales volume with sales expected to increase by just 5% to 7% from this year’s expected revenue of 170 billion baht, with profit projected to outstrip sales growth.
“Next year’s strategy will concentrate on expanding ready-to-eat food products both in domestic and international markets, building up distribution channels to cover more retail outlets and continuing efficiency development to cut production and operating costs,” he says.
Pork and broiler production are expected to expand gradually over the next two years as farmers remain cautious about the economic outlook and banks stay conservative on lending.
Given the projected limited supply in 2010, the International Monetary Fund forecasts pork prices to increase by 4.5% and shrimp by 6.7%, while chicken prices will remain flat.
Even though raw material prices are expected to be higher in 2010, CPF says it foresees limited impact as it has already locked in its raw materials at low costs. The company estimates that these low-priced materials will support its production until at least the first quarter of next year.
Raw material prices are expected to ease by the end of the second quarter due to an increased supply from the harvest season.
