Charoen Pokphand Foods posts strong profits during third quarter as swine prices rise

Charoen Pokphand Food reported a robust third-quarter net profit of 7.5 billion baht, up 24 per cent year-on-year and 25 per cent quarter-on-quarter, thanks to higher average swine prices in both Thailand and Vietnam.

Charoen Pokphand Foods Plc (CPF) is an integrated meat, poultry, and seafood agribusiness manufacturing for both domestic consumption and export.

CPF operates 127 subsidiaries, 96 are in Thailand and the rest are in foreign countries. It has held a 50.4 per cent equity stake in CP Pokphand Co. Ltd.

An analyst at Krungsri Securities said that CPF’s earnings reached new highs, beating the estimate by 6 per cent and market consensus by 10 per cent.

After businesses reopened in the third quarter, the company’s sales revenues grew 10 per cent quarter-on-quarter to 157.8 billion baht. While its gross margin improved to 19.1 per cent.

The domestic sales grew by 7 per cent while international sales increased by 25 per cent year-on-year during the third quarter of 2020.

The strong sales growth from overseas was driven by record-high pork prices, especially in Vietnam where pork price increased by 106 per cent year-on-year to an average of 79,000 Vietnam Dong per kilogram.

However, “CPF’s earnings should drop in the fourth quarter from average swine and broiler prices, as well as higher soybean meal costs”, said Krungsri analyst.

As of 14.42 pm.m on Friday, CPF share price traded at 28 baht per share, an increase of 0.25 baht or +0.00 per cent, with a transaction value of 925.1 million baht. 

Stock Price Info

Stock Fundamental

Peer Comparison

Stock Price Chart

COVID-19

Nearly 5.5k patients in home or community isolation

There are now 5,411 registered Covid patients waiting for a hospital bed within the home isolation and community isolation...

Latest article