Thai food giant Charoen Pokphand’s revenue in Vietnam falls 7% to $3.3 bln in 2023

Thailand’s Charoen Pokphand Foods Public Company Limited (CPF) recorded a revenue of THB116,053 million ($3.26 billion) from its Vietnam operations in 2023, down 7% year-on-year.

By sector, livestock accounted for THB98,854 million ($2.77 billion), down 5% year-on-year, while the figure for aquaculture was THB17,199 million ($482.72 million), down 17%, according to the firm’s report.

In terms of products, the farming business, including animal breeding, live animals and processed meat and eggs, was the biggest cash earner with THB74,561 million ($2.09 billion), down 6% year-on-year, accounting for 64% of the total.

It was followed by animal feed with THB33,678 million ($945.23 million), down 11%, accounting for 29% of the total. Food bucked the trend with growth of 1%, reaching THB7,814 million ($219.31 million) and making up 7% of the total.

Vietnam was CPF’s second biggest market in the period regarding revenue with 20% of the total, only behind Thailand, its home market with THB221,255 million ($6.21 billion), down 1% year-on-year, or 38% of the total.

Another major market was China with THB39,549 million ($1.11 billion), up 7% year-on-year and making up 7% of the total. The three markets accounted for 65% of CPF’s revenue last year.

Globally, CPF recorded a net revenue of THB585,844 million ($16.44 billion) in 2023, down 5% year-on-year. It posted a post-tax loss of THB5,207 million ($146.14 million), versus a post-tax profit of THB13,970 million ($392.09 million) in 2022.

CPF attributed the underperformance to negative impacts of foreign exchange rates, weaker product prices, lower meat prices due to illegal import activities, and weak purchasing demand caused by inflation.

CPF started investing in Vietnam in 1993 with its first factory in the southern province of Dong Nai. In Vietnam, the firm now operates nine animal feed factories and three others for food processing.