CPF’s Net Profit for Q3/2024 Surges by 504% to Reach 7.3 Billion Baht, Reflecting Robust Recovery from Previous Year’s Loss, Emphasizing Sustainable Innovation.

Charoen Pokphand Foods Public Company Limited (CPF) and its subsidiaries, Thailand’s global agri-food company, posted remarkable financial results in Q3 2024. The company, which operates across 17 countries and exports to over 50 markets worldwide, achieved total sales of 142,703 million baht, with 62% from international operations and 38% from Thailand operations. Net profit surged to 7.3 billion baht, marking a dramatic turnaround from a 1.8 billion baht loss in Q3 2023. The impressive recovery stems from enhanced gross profit margins and significantly stronger performance from joint ventures and partnerships, which saw nearly six times increase in profit contribution.
CPF’s gross profit margin rose significantly to 15.4% in Q3 2024, marking a substantial improvement from 10.0% in the same period last year. This robust performance was driven by strong recovery in Vietnam’s pig market, with prices climbing due to supply adjustments following previous outbreaks. Additionally, successful cost optimization across global operations thanks to enhanced production efficiency and lower animal feed raw material prices compared to last year. This was attributed by successful development and sourcing of cost-effective alternative raw materials while maintaining nutritional standards. 
Profit from joint ventures and partnerships were recorded 3,655 million baht, an increase of 592% from the previous year. The primary factors were improved performance of joint venture companies engaged in animal and pig farming in the People’s Republic of China, where pig prices were higher than the same period last year, and production costs decreased. Furthermore, the performance of CPAll Public Company Limited improved compared to the previous year.
Mr. Prasit Boonduangprasert, CEO of CPF, stated that the significant improvement in this year’s performance resulted from the collaboration between management and the team to reverse the losses in 2023. This was achieved through business restructuring, strategic adjustments to respond to economic conditions, and adapting to consumer behaviors in various regions. Notably, the collective effort in managing costs and expenses more efficiently has positioned the company with a strong competitive foundation and the ability to sustain profit growth from this year onward.
Since the onset of the COVID-19 pandemic, the global economy has remained uncertain and volatile in many areas, with socio-political conflicts in several regions. Consequently, the company had to adjust its business operations and competitive strategies to keep up with changing consumer behaviors while also taking actions to mitigate the impacts of global warming.
The company operates with a business approach centered on creating an innovative organizational culture by integrating technology, science, and sustainable business growth concepts. This strategy aims to enhance efficiency and reduce environmental impacts while creating shared value with society. CPF focuses on finding ways to use fewer resources while producing more, ensuring that the products are of the highest quality and value. At the same time, the company maintains processes that support the growth of the entire supply chain, a concept referred to as “Sustainovation.” This approach enables CPF to remain competitive in the current environment and ensures stable growth in the future.



Source: NNT