CPF Reports a Soaring Profit by 41% at ฿26Bn in 2020, Offering a Bt0.60 Dividend

Charoen Pokphand Foods Public Company Limited (CPF) has reported its yearly consolidated financial statement of 2020 through the Stock Exchange of Thailand as follows;

In 2020, CPF reported a net profit of 26,022 million baht, increased 41% from a net profit of 18,455 million baht in 2019. The increase was mainly due to significant improvement of the company’s operational performance over the year.

 

CPF’s gross profit margin in 2020 was at 18%, increased from 14% of last year and EBITDA was at 81,692 million baht, a 72% increase from last year. The increase was mainly due to a decline of swine population which has resulted in an increase in swine price in the region especially in Vietnam,China, Thailand, and Cambodia.

In addition, Thai aquaculture business has also improved from an adjustment in marketing strategy and efficiency improvement in operations which has resulted in a significant increase of shrimp sales in Thailand.

 

In 2020, the company made an investment in China swine business through Chia Tai Investment Co., Ltd. (CTI), a subsidiary engaged in manufacture and sale of animal feed in China, entered into a transaction to invest in swine business in China.

The transaction is paid by CTI’s newly issued shares, representing 65% of enlarged share capital to the seller. After the completion of this transaction since December 1, 2020, CTI has changed from a subsidiary to an associate, where the company indirectly holds 18.28%. As a result, the company reported a one-time gain amounting to 3,909 million baht.

 

In addition, the Board of Directors of CPF approved a dividend payment of ฿0.60/share to be paid on May 28, 2021. The ex-dividend date is May 17, 2021.