Charoen Pokphand Foods Plc (CPF) has announced a 7% year-on-year rise in nine-month net profit, thanks to a recovery in pork prices in Cambodia and Vietnam.
Nine-month net profit was 13.9 billion baht, up from 12.9 billion logged in last year's corresponding period.
The company's overseas operations in the first nine months accounted for 67% of total sales, an increase of 12% year-on-year, with the Vietnam operation growing at the fastest pace, said Sooksunt Jiumjaiswanglerg, chief executive for agro-industrial business and co-president of CPF.
Third-quarter net profit, meanwhile, remained unchanged at 4.9 billion baht.
"Overseas investment is a part of the company's sustainable growth strategy," Mr Sooksunt said. "CPF has invested in promising overseas markets in the agricultural and food sectors, focusing on developing countries with a demand for high-quality and modern farming."
Total sales reached 398 billion baht in the first nine months, up 7% from 372 billion recorded in the same period last year, due to business growth from overseas operations.
Mr Sooksunt predicts that CPF's total sales will reach 600 billion baht in five years, with overseas operations the main growth driver, accounting for 75% of total sales.
To cope with the global economic slowdown, the company is focused on reducing management costs and lowering interest expense via debentures, Mr Sooksunt said.
For business expansion, CPF set up an R&D centre to deliver food products suitable for all consumer groups, including medical patients and ageing consumers, said Sukhawat Dansermsuk, chief executive for food business and co-president of CPF.
Mr Sukhawat said the company must deliver new products that meet consumer demand to overcome the mounting challenge in the ready-to-eat meals business.
CPF shares closed yesterday on the Stock Exchange of Thailand at 24.60 baht, down 65 satang, in trade worth 704 million baht.