0
Charoen Pokphand Foods PLC (CPF) Chairman of the executive committee, Mr. Adirek Sripratak revealed the company's plan to further expand overseas business and expressed confidence that CPF's financial performance will meet targets thanks to positive returns from investments in Thailand and 17 countries.
His statement echoed a belief that amid weakening purchasing power, food business will thrive due to persistent demands especially for the products that are safe, traceable, as well as environmental- and community-friendly. This explains why CPF's food products have been warmly welcomed by worldwide consumers.
"CPF is the producer of reasonable protein-rich food, be they chicken, pork, shrimp, fish and eggs which are all people's main staples. Importantly, CPF adopts an integrated production process. I'm confident that CPF's business will experience no negative impacts and will flourish as always," he said.
Mr. Adirek revealed that in 2020, CPF will maintain its focus in growing business which entails additional investments in potential countries including the 17 countries where CPF's businesses have been located. Among the destinations with high growth opportunities are China, Vietnam, India, the Philippines, Russia and the United States.
CPF's business growth has been driven mainly by overseas investments in 17 countries, which constitute over 70% of the company's revenue worth more than Bt500,000 million. The revenue generated in Thailand is approximately 27-28% of the revenue while exports from Thailand constitute only 5%. Though exports are affected by dollar-baht exchange rate movements, the imports of raw materials balance the foreign exchange impacts.
Mr. Adirek admitted that drought, anticipated to be more severe next year, may negatively affect Thailand's agricultural sector which relies heavily on water. However, CPF's livestock business is supported by abundant water sources but the company may face a slight increase in production cost due to the cyclical adjustment in raw material prices. Amid this situation, CPF will maintain its emphasis on production efficiency, cost management, and the quality of products and services.
December 24, 2019 - CPF
