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CPF Reports Net Profit Increase of 226 Per Cent

by 5m Editor
24 February 2010, at 11:10a.m.

THAILAND - Charoen Pokphand Foods Plc. (CPF) reported net profit 10,190 million baht (THB) for the year 2009 or an increased of 226 per cent from the previous year.

Tremendous increased was mainly as a result of business restructuring and efficiency cost management. In 2010, CPF will continue focus on overseas business expansion which recently CPF announced its plan to invest in two countries, Kenya and Tanzania. For its Thailand operation, CPF will expand its distribution businesses such as 5 Stars Chicken and CP Fresh Mart and is confident that 5 Stars Chicken and CP Fresh Mart will successfully achieve their growth targets in year 2010. CPF is confident that all strategies implemented will lead the company to continuous growth for the year 2010.

The reasons that drive CPF's operating results were the improvement of operating results of domestic operations and overseas operations especially Turkey together with an increased of sales of food products under CP brand in many countries. Other factors that help boost CPF's net profit were the efficiency of production cost management and financial management. CPF announced its dividend payment for the last six months operating results at THB0.50 per share. Total dividend payment from 2009 operations is THB0.73 per share (Interim dividend payment for the first six months period was THB0.23 per share and was paid on 4 September 2009)

Adirek Sripratak, President and Chief Executive Officer of CPF, said that CPF will continue focus on its strategy to create sustainable growth and to make consistent dividend payment to shareholders. CPF will focus on an expansion of food business under CP brand, market diversification, expansion of distribution channels both in Thailand and overseas and overseas expansion in high potential countries.

Mr Adirek said in order to cope with economic uncertainty, fierce competition both in Thailand and global markets, climate change and change in consumer behaviour, which will affect CPF business and be able to maintain its competitive advantage, CPF has continuously emphasised on production cost management to make its production cost to be lower than its competitors, market survey and risk management.

For year 2010, CPF will still have continuous growth especially for its overseas operations and shrimp business which is benefit from less supply from competitors in world market. For the operation, CPF will be prudent on business investment and focus on production cost management. CPF will expand its food products under CP brand and expand distribution channel within Thailand especially 5 Stars Chicken and CP Fresh Mart which CPF plans to expand more branches this year.

For overseas investment, recently CPF announced its plan to invest in Kenya and Tanzania in order to study the opportunity to invest in feed and farm businesses. Kenya and Tanzania have very high potential for farm business because meat prices in both countries are still very high. Moreover, Kenya and Tanzania are tourist countries and have a lot of tourist come to visit each year. CPF is confident that these two countries will be key factors to drive CPF’s growth in the future.

For year 2009, CPF's sales was THB165,063 million, increased 6% from the previous year. Net profit was THB10,190 million or THB1.52 per share. CPF announced dividend payment for the last six months operating results period at THB0.59 per share (XD on 17 March 2010). CPF will propose dividend payment to the shareholders for approval at its annual general meeting no. 1/2553 on 21 April 2010 (XM on 17 March 2010).