CP Pokphand’s total turnover reached USD 1,950 million during 2010. (Photo: CP Pokphand Co Ltd)
Aquafeed giant's year-on-year profits rise 14.5 times
Wednesday, March 30, 2011, 15:10 (GMT + 9)
Leading Chinese animal and aqua feed CP Pokphand Co Ltd (CPP) has reported a profit of USD 132.8 million - representing a year-on-year increase of 14.5 times compared to 2009’s profit of USD 8.6 million - for the year ending 31 December.
CPP’s total turnover reached USD 1,950 million; the company ascribed 94.3 per cent of this amount to the feed business and 5.7 per cent of it to its Chlortetracycline (CTC) operations. The company’s overall gross profit margin surged by 15.9 per cent.
After the Hong Kong-listed company finalised the acquisition of a feed business in China from its parent company in late February last year, it has boosted its competitive advantage in the feed sector and achieved notable improvements in its operational results.
|Aquafeed bags. (Photo: CP Pokphand Co Ltd )
Its feed revenues for the 10 months to 31 December 2010 rocketed to some USD 1,840 million thanks to sales of 3.76 million tonnes of animal feed products. Complete and concentrate feed made up 91.7 per cent of total turnover of all feed products while aqua contributed 10.9 per cent and premix feed accounted for 5.6 per cent.
As well, CCP established a feed mill leasing deal with the parent company last October to continue to grow its production capacity.
In order to satisfy the changing nutritional needs of growing animals through different stages of development, the Group managed to create and advertise a variety of products grouped in Nutrition Systems.
Simultaneously, the company was able to enlarge its overall gross profit by way of product review and rationalisation, product structure optimisation and flexible pricing.
The company is hopeful about the future: CPP has signed a deal agreement to lease four feed plants from its parent company to expand its production capacity. The Group plans to optimise plant production by assigning specific production lines to generate specialised and high-value nutrition products.
In July 2010, Thailand’s largest agribusiness conglomerate Charoen Pokphand Group (CP Group) and global alternative asset manager The Carlyle Group informed that pan-Asian investment fund Carlyle Asia Partners III LP would acquire USD 175 million of convertible preference shares and options from CP Group in CPP. CP Group is the single largest shareholder of CPP.
- Group acquires USD 175 mln stake in CP Pokphand
By Natalia Real