Publicly listed animal feed and processed chicken producer, PT Charoen Pokphand Indonesia (CPI) more than doubled its first quarter net profits from a year earlier on higher selling prices, reports Jakarta Post.

It booked 143.77 billion rupiah (IDR; about US$14 million) in net profits in the first three-month period of the year, representing a 101 per cent rise from IDR 70.72 billion booked a year earlier, president director, Thomas Effendy, said yesterday.

"The company put in a fairly good performance in the period due to rising chicken prices and the decline in commodity prices used for our raw materials," Mr Thomas said.

In total, the company's net sales in the first quarter this year reached IDR 3.11 trillion, increasing by eight per cent from the same period last year.

The revenue came from three types of products: poultry feed, 76.3 per cent; day-old chickens, 14.8 per cent; and processed chicken meat, 8.6 per cent.

The first quarter's performance follows an encouraging showing in 2008, when the company posted IDR 253.97 billion in net profits – up from IDR 185.44 billion profit in 2007. Net sales last year reached IDR 13.21 trillion – up on the IDR 8.67 trillion reported for 2007.

The profits would have been even higher had the firm not suffered currency losses of IDR 100 billion, said director, Ong Mei Sian.

"The loss happened because 50 per cent of our debts are in dollars. But, this year currency losses may fall as the rupiah is strengthening," she said. In 2008, the firm recorded IDR 379 billion in currency losses.

CPI's short-term loans amounted to IDR 1.2 trillion as of the end of 2008. Around $60 million of this debt will mature in mid-2010, Ms Ong Mei said.

Turning to this year, Mr Thomas is confident the company, a local subsidiary of the Thai conglomerate, Charoen Pokphand Foods, would reach the targeted IDR 300 billion in net profits and IDR 14.5 trillion in sales by the end of the year.

Steps are being carried out to ensure the company's growth amid the current tough economic conditions, including a decision not to give out dividends and an IDR 200 billion cap on capital expenditure.

In 2008, CPI produced 4.5 million tons of poultry feed, bred 607 million chicks, and processed 24,000 tons of chicken meat.

The company claims to hold a market share of 47 per cent for broiler poultry feed, 33 per cent for layer poultry feed, 41 per cent for day-old-chick broilers, and 36 per cent for day-old-chick layers, concludes the report in Jakarta Post.