Charoen Pokphand Foods Public Company Limited (SET: CPF) has announced its 2Q23 consolidated financial statement through the Stock Exchange of Thailand as follows;
In the second quarter of 2023, sales revenue was THB 150,246 million, of which THB 93,652 million (62%) was contributed by international operations and THB 56,594 million (38%) was from Thailand operations. The Company incurred a net loss of THB 793 million, representing a 119% decrease from the same period of the previous year. This decline was due to the reduction of gross profit margin reported at 11.0% declined from 14.5% in the second quarter of the previous year.
The main factors are outlined below:
1) Production costs including raw material costs used in animal feed production and energy cost increased.
2) Price of swine was lower than the same period last year due to an oversupply of pork from illegal imports and the decreased impact of the African Swine Fever (ASF) which resulted in an increase in swine production. In addition, market consumption is lower-than-anticipated.
3) Overall economic conditions impacted negatively on purchasing power in various countries.
Furthermore, there are other factors contributing to the net loss, such as share of loss of associates and joint ventures, led by the operational performance of an associate in China which was affected by low swine prices and high raw material costs.
Additionally, the upward trend of interest rates globally has also resulted in increased interest expenses and financial costs for the Company compared to the same period in the previous year.
