Charoen Pokphand Foods Public Company Limited (SET: CPF), Thailand’s leading meat producer and exporter, is expediting the IPO and market debut of its largest overseas unit in Vietnam to bolster expansion efforts.
CEO Prasit Boondoungprasert revealed to reporters on Wednesday that the company has seen movements by Vietnamese authorities regarding the IPO for C.P. Vietnam Corporation, following years of paused actions. He emphasized that the IPO procedures would commence promptly upon receiving regulatory approval.
Last year, Vietnam was the key contributor to CP Foods’ offshore sales, generating roughly 21% or 122 billion baht ($3.6 billion), as per company insights, while China followed, accounting for around 6% of sales.
Prasit stated that Vietnam’s robust economic expansion and significant population are set to be major growth catalysts for CP Foods in the coming years. The planned listing in Vietnam is anticipated to unlock fresh financial resources while simultaneously enhancing the company’s brand visibility in the region.
Amidst challenges of decelerating growth and an aging population in Thailand, CP Foods has significantly increased its investment in animal feed, farming, and food processing facilities around the world, with operations across 18 international markets, including major presences in the US, Brazil, Russia, and China.
In 2024, the company rebounded to a profit of 19.6 billion baht after incurring a net loss of 5.21 billion baht the previous year; a resurgence largely driven by successful pork operations in Vietnam and China. This marked the highest annual profit since 2020, Bloomberg data shows.
CPF projects a 5% to 8% increase in total revenue through 2025, with further profit enhancements predicted for overseas operations, particularly in Vietnam and China.
Additionally, the CEO noted that the anticipated US reciprocal tariff plan would exert minimal effect on the company’s financial performance since most of the US product supply originates from domestic operations. Last year, CPF’s US ventures contributed $700 million to the company’s overall revenue.
