CPF : CHAROEN POKPHAND FOODS PUBLIC COMPANY LIMITED
9M/2023 (Jan - Sep 2023)
Business Overview
The Company engages in agro-industrial and food conglomerate with 3 product catagories : 1) Feed business involving in production and sale of anminal feed, 2) Farm-Processing business involving in breeding, farming and basic meat processing, 3) Food business involving in production of semi-cooked and cooked meet as well as ready-meal products including food retail and food outlets.
Financial Statement
9M23 9M22 2022 2021
Income Statement (MB)
Revenues 442,046.31 458,427.33 619,017.57 517,584.40
Expenses 431,566.28 430,822.06 587,800.74 497,416.60
Net Profit (Loss) -5,328.42 12,157.91 13,969.55 13,028.26
Balance Sheet (MB)
Assets 910,181.16 932,852.04 926,987.18 842,680.62
Liabilities 629,580.19 630,606.21 627,143.64 555,543.77
Shareholders' Equity 235,892.32 257,668.08 256,052.65 215,066.99
Cash Flow (MB)
Operating 20,939.43 32,181.13 33,543.50 6,420.22
Investing -11,802.25 -19,597.22 -25,723.28 -22,705.24
Financing -17,630.94 -21,109.36 -12,858.25 -5,743.51
Financial Ratio
EPS (Baht) -0.73 1.48 1.69 1.56
GP Margin (%) 10.86 14.15 13.33 12.85
NP Margin (%) -0.97 2.74 2.33 2.72
D/E Ratio (x) 2.24 2.09 2.09 1.93
ROE (%) -1.43 8.08 5.93 6.40
ROA (%) 2.38 4.97 4.61 4.15
Business Plan

The Company has strategized for international business expansion or globalization, by bringing our fully integrated model to invest internationally. Moreover, enhancing the value proposition of the business to more value-added business through a focus on nutrition food for consumers. The Company adapts to the evolving consumer preferences by broadening distribution channels and implementing cost-effective innovations through digital transformation platforms which adds to the Company's competitiveness.

Sustainable Development Plan

Information can be found on the Sustainability Report 2022.

(https://www.cpfworldwide.com/th/sustainability/report)


Business Highlight

CPF operates a fully integrated agro-industrial and food business with 3 main product categories: 1) Feed business involving in production and sale of animal feed, 2) Farm-Processing business involving in breeding, farming and basic meat processing, 3) Food business involving in production of semi-cooked and cooked meet as well as ready-meal products including food retail and food outlets.

Performance and Analysis
Business Performance Summary

In the nine months of 2023, sales revenue totaled THB 438,525 million, with THB 271,512 million (62%) generated by international operations and THB 167,013 million (38%) by operations in Thailand. The gross profit margin dropped from 14% in the previous year's nine months to 11%. Consequently, the company incurred a net loss of THB 5,328 million, marking a 144% decrease compared to the same period last year. The main contributing factors are outlined below

  1. The price of swine dropped lower than the same period last year due to the oversupply of pork resulting from illegal pork imports.
  2. Production costs, which includes raw material costs required for animal feed production as well as energy cost, increased.
  3. Overall economic conditions negatively impacted purchasing power in various countries.

Other contributors to the net loss include share of loss from associates, driven by poor operational performance in China due to low swine prices and high raw material costs. Also, rising global interest rates increased interest expenses and financial costs compared to the same period last year.

Key Milestones
  1. The Company implemented the CPF Food Standard PS 7818:2018, adopting a 'One Standard for All' approach. CPF has successfully implemented this standard in 117 of its facilities in Thailand, along with other international certifications certified by BSI Group (Thailand) Co., Ltd.
  2. Twenty-three of the Company’s fresh chicken and cage-free egg items have been awarded the 'Carbon Reduction Label,' while two items have earned the Carbon Footprint Label from the Thailand Greenhouse Gas Management Organization (TGO).
Risk Management Policy

Information can be found in the Annual Report 2022 (Form 56-1 One Report)

https://www.cpfworldwide.com/th/investors/report-56-1-2022

Recent Awards and Recognitions
  1. The Company has been distinguished as the preeminent leader in Asia's agricultural sector, securing the title of "MOST OUTSTANDING COMPANY 2023" by ASIAMONEY.
  2. The Company has received three prestigious awards at the Asia Pacific Enterprise Awards (APEA) 2023, including the Corporate Excellence Award, Inspirational Brand Award, and Master Entrepreneur Award.
  3. The No. 1 Brand Thailand 2023 award has been consecutively won for 3 years, according to a survey by Marketeer magazine, the country’s leading marketing media outlet. The products that received the award are black pepper chicken sausage, 'CP FI-IT', and two frozen food products: CP Spaghetti Carbonara and CP Shredded Chicken Spaghetti.
Revenue Structure
Feed 25% Farm 54% Food 21%
Stock Information
SET / AGRO / FOOD
Closing price CPF SET index 27.00 21.50 16.00 1714.00 1609.00 1504.00 1399.00 3-10-22 5-1-23 31-3-23 4-7-23 29-9-23
as of 29/09/23 CPF FOOD SET
P/E (X) 50.16 22.11 20.33
P/BV (X) 0.71 1.56 1.44
Dividend yield (%) 3.69 3.27 3.18
29/09/23 30/12/22 30/12/21
Market Cap (MB) 178,252.72 213,558.81 219,586.68
Price (B/Share) 20.70 24.80 25.50
P/E (X) 50.16 11.01 16.86
P/BV (X) 0.71 0.81 1.02
CG Report:
Company Rating:
A+ stable by TRIS Rating
Major Shareholders
as of 09/05/2023
CPG Group (25.02%)
UBS AG LONDON BRANCH (10.36%)
Thai NVDR Company Limited (6.92%)
Charoen Pokphand Holding Co., Ltd. (6.27%)
Charoen Pokphand Food Public Company Limited (2.89%)
Others (48.54%)
Company Information and Contact
http://www.cpfworldwide.com
iroffice@cpf.co.th
0-2766-8000
C.P. TOWER, FLOOR 15, 313 SILOM ROAD, BANG RAK Bangkok 10500
Other Trading Info. : https://www.settrade.com/C04_01_stock_quote_p1.jsp?txtSymbol=CPF
Remarks: This document is prepared by the listed company and aimed to disseminate the listed company’s information to investors for only investment decision support. The listed company does not give investment advice or recommendation regarding the listed company’s securities. Before making investment decisions, investors should study additional information and seek advice from relevant professionals. In no event shall the listed company be responsible for any loss or damage arising from the use of the information contained herein. The listed company reserves the right to amend the content specified in this document without prior notice. Unless otherwise permitted by the listed company, copy, modification, or dissemination of this document or the content contained herein is prohibited. In case there is any questions regarding the listed company’s information, the investors may seek for additional information from the report or information which the listed company has disclosed through the Office of the Securities and Exchange Commission’s and/or the Stock Exchange of Thailand’s channel.
Published on 07/12/2023