Charoen Pokphand Foods Public Company Limited (SET: CPF) has announced that its sales revenue in 2023 was THB 585,844 million, a slight drop by 4.6% or THB 28,353 million from 2022, comprising of 62% from international operations, 32% from Thailand domestic operations, and 6% from Thailand export operations.
The main reasons for a decline in revenue were lower swine price than year 2022 and translation loss of financial statements from oversea subsidiaries caused by the volatility of foreign exchange.
Gross profit in 2023 amounted to THB 61,201 million, a decrease of 25% from the previous year (the gross profit margin in 2023 was 10.4%, down from 13.3% in 2022).
A decrease in gross profit and margin was due to swine prices that decreased by 15% on average from 2022, mainly due to price decreases in Thailand, Vietnam, and Cambodia. Specifically, Thai swine price decreased by approximately 31%, resulting from illegal pork imports into Thailand which decreased the price of swine below the cost of operation.
The increase in cost of production including the raw material prices used in feed production and the costs of energy. The overall economic conditions in various countries have impacted purchasing power, resulting in prices being unable to reflect the increasing costs. The financial costs in 2023 amounted to THB 25,506 million, representing a 25% increase from 2022, mainly attributable to the global rise in interest rates.
With the aforementioned factors in 2023, the net loss attributable to CPF was THB 5,207 million, which decreased by 137% from 2022.
Mr. Prasit Boondoungprasert, Chief Executive Officer of CPF, stated that the adjustment of the operational plan to be consistent with the current situation, the weakening trend of prices of raw materials for animal feed, and the sales of some investments in China in the past year, resulting in the company being confident that operating results in 2024 will definitely be better than last year.
