Falling Prices Hit Charoen Pokphand18 October 2012
THAILAND - Charoen Pokphand Food (CPF's) net profit for quarter three (Q3) 2012 is B2.7bn, a decrease of 32 per cent Quarter on Quarter (QoQ) and 46 per cent Year on Year (YoY).
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 QoQ respectively, reports
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.
ThePigSite News Desk