CPF targets business growth in overseas

General Press Releases Tuesday August 28, 2018 17:02
Bangkok--28 Aug--CPF

Charoen Pokphands Foods PCL (CPF) plans to generate more business growth from overseas operations, focusing on increasing capacity in Thailand and foreign bases to serve export market. It cites growing demand internationally, especially in ASEAN market, as the reason for this strategic decision.

The company also expects better performance in the second half of 2018 as a result from improved performance in swine and aquaculture business.

Mr.Sooksunt Jiumjaiswanglerg, Chief Executive Officer for agro-industrial business and Co-President of CPF, said the company will move towards overseas growth. The ratio of total sales from overseas operation and Thai operation, including exports, will shift from 68:32 in this year to 70:30 in the next five years.

"CPF's direction will focus on export sales expansion. The company's foreign operations are going to shift from mainly domestic consumption to more exports. So far, its production already bounds for more than 30 countries around the world, and will expand the production to increase export sales. The company believe this strategic decision will help us to reach our target growth," said Mr.Sooksunt.

Under the expansion plan, it will focus on the integrated poultry project in Vietnam, worth nearly USD250 million, including feed mill breeding farms and processing plant. The plant will be completed by the end of 2019. The processed chicken from this plant will export to other Asian countries such as Japan.

Mr.Sooksunt expressed optimism that the company's performance in second half of 2018 will be brighter than the first half. The growth will be driven by continuous recovery in Vietnam's pig prices and improved sales in aquaculture business.

He noted that CPF's overseas operations in the first half 2018 showed well and profitable performance, especially the Philippines and India. Moreover, the performance from Turkey also improved, resulting from business restructuring mainly on animal feed and processing food.

The outlook in the second half of 2018 is forecasted to outperform the first half of this year. The main two contributing factors to encourage business growth are pig prices particularly in Vietnam are increasing and it would back to normal in the second quarter this year as well as aquaculture business in Vietnam, India and Thailand.

The two factors will maintain positive environment for the rest of the year. Therefore, CPF sees the operational results will achieved its growth target at 5-8% this year.
CPF's current investment in 17 countries including Thailand covering more than 4,000 million people. The company's majority revenue source comes from overseas, such as China, Vietnam.

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