Severity of Covid-19 Lockdown Weighs Heavily on CPF as 9M21 Earnings Drop to THB6.3Bn

Charoen Pokphand Foods Public Company Limited (CPF) has announced its 3Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

CPF stated that in the third quarter of 2021, the situation of Covid-19 pandemic has worsened in Thailand and Vietnam. Lockdown measures have impacted overall consumers’ purchasing power as well as the company’s operating expenses which resulted in the company’s net loss of Baht 5,375 million in the third quarter of 2021, decreased 172% from the same quarter of the previous year.

The company’s revenue from sales in the third quarter of 2021 amounted to Baht 125,939 million, decreased 20% from the third quarter of 2020 which resulted from the deconsolidation of Chia Tai Investment Co., Ltd. (CTI) in December 2020. Without the impact of the CTI deconsolidation, revenue in the third quarter of 2021 increased by 4%.

Gross profit margin was 9%, lower than last year’s gross profit margin of 19% due to an approximately 20% decline in swine price and 5% increase in swine production cost from the same period of last year. The softened swine price also resulted in a decrease in fair value of biological assets of Baht 3,583 million from the same period of last year.

Share in profit of associates decreased by Baht 3,294 million from the same period of last year, primarily due to the decline in performance of Chinese associate company and CP ALL Public Company Limited (CPALL).

Still, the company reported revenue from sales of Baht 374,923 million and net profit of Baht 6,308 million.