Charoen Pokphand Foods Public Company Limited (SET: CPF) posted a 1Q26 net profit of THB 4.88 billion, surging 349.2% from the previous quarter but down 43.0% year-on-year, according to Finansia Syrus Securities. Stripping out a bio gain of THB 530 million and FX gain of THB 28 million, CPF’s core profit stood at THB 4.32 billion—recovering sharply from THB 107 million in 4Q25, though still down 49.6% y-o-y, and surpassing consensus expectations by 21%.
The better-than-expected profit was mainly due to a strong recovery in gross margin, reaching 15.6% (above the forecast of 14.5% and improving from 12.7% in 4Q25, though below last year’s 18.5% due to a high base). The margin improvement was driven by the pork business in Thailand, Vietnam, and Cambodia.
Total revenue in 1Q26 weakened, down 2.9% q-o-q and 5.2% y-o-y, as both sales volume and Thai pork prices fell amid sluggish overall demand. Operating expenses remained well-managed, decreasing 12.8% q-o-q and 3.0% y-o-y, pushing the SG&A-to-sales ratio down to 8.7% from 9.7% in 4Q25 (normally higher in the fourth quarter) and only slightly up from 8.5% in 1Q25 due to the larger revenue decline.
Profit contribution from associated companies dropped 16.0% q-o-q and 60.3% y-o-y to THB 1.37 billion, despite a higher CPALL profit contribution (THB 3.15 billion, with CPF holding a 34.5% stake). However, this was offset by larger losses from the China pork business.
1Q26 core profit accounted for 24.3% of the full-year estimate. Looking ahead, 2Q26 earnings are not expected to rebound significantly as selling prices, including Thai pork and chicken as well as Vietnamese pork, have begun to soften. Losses from China’s pork segment are likely to continue, and in 2H26, raw material costs could increase.
CPF’s earnings outlook hinges on a recovery in meat prices before the stock becomes attractive once again.
