Charoen Pokphand Foods Public Company Limited (SET: CPF) reported a steep 43% year-on-year decline in net profit for the first quarter of 2026, as persistently weak swine prices squeezed margins across its key markets. Despite the headline deterioration, the agro-industrial giant managed to surpass market expectations on earnings, offering investors a modest silver lining.
Net profit attributable to the Company came in at THB 4,875 million in Q1/2026, down sharply from THB 8,549 million in the same period last year. The net profit margin contracted to 3.57% from 5.93% a year ago. The primary culprit was a pronounced drop in swine prices — down roughly 26% year-on-year in Thailand alone — as supply normalized following the easing of disease outbreaks that had tightened supply in Q1/2025. Oversupply conditions also prevailed in Vietnam and China, amplifying pressure across the group.
Total revenue from sales declined 5% to THB 136,697 million, versus THB 144,175 million in Q1/2025. However, stripping out the impact of Thai Baht appreciation against operating currencies such as the Vietnamese dong, Turkish lira, and US dollar, the organic revenue decline was a more modest 1.6%. China was the weakest performer, with sales tumbling 18% due to slowing livestock industry demand for animal health products. Vietnam fell 11%, though largely on currency effects.
Gross profit fell 20% to THB 21,289 million, with the gross profit margin declining from 18.3% in Q1/2025 to 15.6% in Q1/2026. Distribution and administrative expenses eased slightly to THB 11,868 million (-3%), providing partial relief. Finance costs also improved, falling 10% to THB 5,497 million as CPF restructured toward lower-cost funding, with the average cost of debt dropping from 4.33% to 3.71%. Nonetheless, a THB 2,076 million plunge in share of profit from associates — driven by losses at a Chinese swine-farming partner — added further drag.
Beats on Earnings, Misses on Revenue vs. Consensus
Against LSEG consensus estimates, CPF’s results were a mixed bag. Revenue came in ~2.8% below analyst forecasts (consensus: ~THB 140,612 million), reflecting the more severe-than-expected revenue headwind. However, gross profit and margins beat estimates meaningfully — actual gross margin of 15.57% versus the consensus of 14.23% — suggesting better-than-expected cost management. Net profit of THB 4,875 million exceeded the consensus of THB 4,180 million by approximately 17%, while EPS of THB 0.60 beat the mean estimate of THB 0.50 by roughly 20%.
