Report CP Foods Thrives with 134% Profit Rise in 2025

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Photo courtesy of Khaosod

 

Charoen Pokphand Foods Public Company Limited (CP Foods) has reported a remarkable financial performance for the first half of 2025, with net profit leaping by 134% compared to the previous year, reaching THB 18,926 million (approximately 582.87 million USD). This impressive growth highlights the company’s successful international diversification strategy, where overseas markets now play a central role.

 

The Thai agribusiness giant achieved total sales of THB 291,770 million (around 8.985 billion USD). Notably, international operations formed 62% of these revenues, with exports contributing a further 5%. The remainder, 33%, came from domestic activities. CP Foods' extensive global presence is reflected in its joint ventures in 16 countries and a distribution network that spans over 50 markets worldwide.

 

CEO Prasit Boondoungprasert noted a 6% rise in sales when measured in local currencies. However, the appreciation of the Thai baht resulted in a minor 1% decline in the company's reporting currency.

 

A significant factor in the profit surge was favourable market conditions, including higher average prices for poultry and pork across several regions. Global meat supply has diminished due to widespread outbreaks of animal diseases such as avian influenza and African Swine Fever, impacting numerous countries.

 

CP Foods managed to take advantage of these supply constraints while also cutting input costs, thanks to cheaper soybean meal and stringent cost management. The company's effective disease prevention protocols and improved supply chain efficiency bolstered its profit margins.

 

CP Foods reiterated its dedication to stringent food safety standards across its global operations. The company has heavily invested in innovation and epidemic prevention to successfully mitigate livestock disease risks, thereby maintaining production stability and consumer confidence.

 

Looking ahead, CEO Prasit expressed optimism for continued positive momentum into the second half of 2025. He reassured stakeholders regarding potential U.S. trade issues, noting that shrimp exports to the U.S. constitute less than 0.1% of total sales, thus limiting risk from policy changes.

 

The company plans to expedite its localisation strategy by expanding ready-to-eat food production facilities within the U.S. This aligns with CP Foods’ broader strategy to establish production capabilities in target markets, meeting local consumer demand effectively.

 

Reflecting the strong financial performance, CP Foods' Board of Directors has approved an interim dividend of THB 1.00 per share for the first half of 2025. Shareholders on record as of 1st September 2025 will receive their dividends on 12th September 2025.

 

Overall, these results position CP Foods as a prominent beneficiary of global protein market dynamics, demonstrating the effectiveness of its international expansion and operational strategies.

 

  Adapted by ASEAN Now from Khaosod 2025-08-15