CPF Enjoys 41% Net Profit Jump in 2020, Foreseeing Continued Growth in 2021

Charoen Pokphand Foods PCL (CPF) reported Bt26,022 million net profits in 2020, an increase by 41% from 2019, while the earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 72% on year to Bt81,692 million. The performance improved from the previous year despite the COVID-19 outbreak and African Swine Fever (ASF) thanks mainly to the adoption of advanced technology and innovations including AI in the production process, to attain optimal standards.

Mr. Prasit Boondoungprasert, Chief Executive Officer of CPF, attributed the outstanding results to in-house technology and innovations that involved new animal breeding and farming practices; the integration of Bio-security into the process; and the effective and preventive measures against the spread of diseases especially in the swine and shrimp businesses.

CPF’s profitability improved significantly as the Company gave importance to efficiency and cost control, banking on technology and innovations in farming, production and distribution. In addition, pork prices in Asia increased particularly in Vietnam and China while the aquaculture business in Thailand showed a significant improvement following adjustments in marketing strategies and an operational efficiency program.

Amid the COVID-19 outbreak which put grave pressure on the economy and consumers’ purchasing power, CPF’s products remained essential for everyday life. In the year, CPF also modified distribution channels to reach more consumers while the work process embraced more technology. The process had effectively shielded CPF from the pandemic.

Looking forward, Mr. Prasit expected an improvement in purchasing power in 2021 as the COVID-19 outbreak is easing. Domestic and international demand for Thai food products will hence increase. Coupled with the Company’s capacity expansion and technology-based production efficiency enhancement, CPF is confident of continual competitiveness and expects the continuation in impressive results in 2021.

At the 1/2021 shareholders meeting, the Board of Directors proposed the Bt1 dividend payment for the 2020 performance. (The interim payment of Bt0.40 per share was paid on 11 September 2020).