Charoen Pokphand Foods PLC (CPF) reported THB 12,139 million ($388 million) in net profits in the first half of 2020, a jump by 45% from the corresponding period a year earlier, chiefly due to the African Swine Fever (ASF) in Asia and a significant improvement in Thailand's aquaculture business following operational restructuring.
Prasit Boondoungprasert, chief executive officer of CPF, attributed the improved earnings mainly to overseas businesses that CPF has grown in the past 10 years. Regarding the COVID-19 pandemic, Prasit admitted that it has dented the purchasing power and overall economy. Though, CPF has witnessed mild impacts as its products are essential for everyday life. Meanwhile, CPF has emphasized the application of more technology and adjustments in operational/sale formats in accordance with the changing circumstances.
Prasit added that the aquaculture business in Thailand showed an impressive improvement following operational restructuring. The greater efficiency led to strong growth in profitability.
Looking forward, he expected CPF to show impressive financial results throughout 2020. CPF is likely to report record annualized net profits in 2020 thanks mainly to regional pork shortages that will keep pork prices above last year’s levels, as well as continued growth in profits from Thailand’s aquaculture business.