- freeimages.com/kikashiCP Foods plans to expand its international operations and overseas acquisitions.
Charoen Pokphand Foods PCL, Thailand’s largest meat and animal feed producer, plans to spend THB20 billion-25 billion (US$614 million-767 million) this year, mostly to expand its international operations and overseas acquisitions.
Aiming to meet the company’s sales growth target of 10 percent per year, it will keep its annual investment budget at that level over the next five years. Two-thirds of CP Foods’ revenue comes from overseas markets, where it is aiming for revenue growth of 15 percent. It is focused on high-growth markets in Japan, Russia, South Korea and the Philippines.
CP Foods plans to spin off the non-core assets of its Hong Kong-listed CP Pokphand, and put the new entity on the Hong Kong stock exchange near midyear.
The company’s shrimp and farm businesses have taken hits this year, but it expects to recover in those two areas in the second quarter. CP Foods’ farm business accounts for 35 percent of sales, but has been hurt by price volatility and excess supply.
Its shrimp business was affected by Early Mortality Syndrome and higher European Union tariffs on Thai frozen shrimp. CP Foods will focusing on customers in China and Australia, while its Vietnam unit will export to Europe.