Chief executive officer Prasit Boondoungprasert said the business expects to grow its annualized revenue to grow by 8-10% in 2020 thanks to the positive performance of overseas business and the recovery of pork prices amid lower supplies. It also plans to further expand overseas businesses under a goal to reach Bt800,000 million in annualized revenue in 2023.
He said the expected 8-10% revenue growth in 2020 will be attributable mainly to additional overseas investments as well as the fallout from African Swine Fever as pork prices in some countries are tipped to increase while the prices in Thailand tend to be sustained at Bt70 per kg.
Under the 5-year business plan (2019-2023), CPF maintains the goal to grow revenue by 10% on annual average and to boost the annualized revenue to Bt800,000 million in 2023 mainly due to continued investments in overseas food businesses. The food business should then contribute two thirds of total revenue. Currently, overseas division constitute over 70% of the company's revenue worth more than Bt500,000 million.
CPF’s executive committee chairman Adirek Sripratak expressed confidence that the company’s financial performance will meet targets thanks to positive returns from investments in Thailand and 17 countries.
“CPF is the producer of reasonable protein-rich food, be they chicken, pork, shrimps, fish and eggs which are all people's main staples. Importantly, CPF adopts an integrated production process. I'm confident that CPF's business will experience no negative impacts and will flourish as always,” he said.
Adirek added that in 2020, CPF will maintain its focus in growing business which entails additional investments in potential countries including the 17 countries where CPF's businesses have been located. Among the destinations he expects to have high growth opportunities are China, Vietnam, India, the Philippines, Russia and the United States.
Increased production costs
He did warn that drought, anticipated to be more severe next year, may negatively affect Thailand's agricultural sector which relies heavily on water. However, CPF's livestock business is supported by abundant water sources but the company may face a slight increase in production cost due to the cyclical adjustment in raw material prices.