Falling Prices Hit Charoen Pokphand18 October 2012
THAILAND - Net profit for Charoen Pokphand Food (CPF) in quarter three (Q3) 2012 was THB2.7 billion, a decrease of 32 per cent quarter-on-quarter and 46 per cent year-on-year.
Despite a small increase in sales in Q3, there has been a decrease in profits due to falling meat prices on the domestic and international markets. The average price of broilers and farm-gate pigs in Q3 2012 has declined by 4.7 per cent and 6.7 per cent quarter-on-quarter, respectively, reports
The Nation of Thailand.
Gross margin in Q3 2012 also fell from Q2 due to an increase in the price of raw materials. Accordingly, CPF's gross profit margin has descended to 13.3 per cent from 13.6 per cent in Q2 2012.
This decline is also expected to be seen in Q4, with the overall 2012 financial year profits expected to be down. However, business is expected to recover in 2013.