Thai food giant CPF posts $1.64 bln H1 revenue in Vietnam

Thailand’s Charoen Pokphand Foods Public Company Limited (CPF) recorded a revenue of THB58.23 billion ($1.64 billion) from its Vietnam operations in the first half of this year, down 6% year-on-year.

By sector, livestock accounted for THB48.22 billion ($1.36 billion), down 5% year-on-year, while aquaculture was THB10 billion ($282.5 million), down 13%, 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 THB36.16 billion ($1.02 billion), down 9% year-on-year, accounting for 62% of the total.

It was followed by animal feed with THB18.22 billion ($514.2 million), down 3%, and 31% of the total. Food bucked the trend with growth of 7%, reaching THB3.85 billion ($108.7 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 THB112.7 billion ($3.18 billion), up 5% year-on-year, or 38% of the total.

Another major market was China with THB19.21 billion ($532.3 million), up 18% and making up 7% of the total. The three markets accounted for 65% of CPF’s revenue from January-June.

Globally, CPF recorded a net revenue of THB294.03 billion ($8.3 billion) in the first half of this year, down 0.3% year-on-year. It posted a post-tax loss of THB3.5 billion ($99.3 million), versus a post-tax profit of THB7.1 billion ($199 million) in the same period of 2022.

Reviewing the second quarter of this year, CPF noted said its total revenue fell 4% year-on-year to THB150.25 billion ($4.24 billion). Of which, Vietnam accounted for THB30.83 billion ($870.3 million), down 7%.

CPF started investing in Vietnam in 1993 with the 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.

Last October, CPF's subsidiary C.P Vietnam Corporation (CP Vietnam) shipped its first lot of processed chicken to Japan after meeting all food safety and quarantine requirements of the demanding market. The first shipment was 33.6 tons of processed chicken. The shipped products were from its plant in the southern province of Binh Phuoc.

In January, CP Vietnam kicked off the construction of a 4.3-hectare shrimp farm factory in the Mekong Delta province of Ben Tre. The new factory, with an annual capacity of 1.1 billion shrimp seeds, aims to apply modern technologies to bring about eco-friendly and high-quality products for the sustainable growth of Vietnam’s aquaculture sector.

In July, CP Vietnam and the northern province of Hoa Binh signed a cooperation agreement aiming to bolster food security and stimulating long-term economic growth. In particular, CP Vietnam will share modern and sustainable farming technology and practices with farmers in Hoa Binh province. In return, the province will support a variety of CP Vietnam's projects, including those in agriculture, food processing, basic utilities, and others.

Both parties also foresee additional collaboration to nurture diverse industries, notably regional tourism, cultural exchange, and education, with the aim of promoting holistic economic growth and enhancing human resources within the province.