Robust Results for GFPT13 August 2013
THAILAND - GFPT has reported a Bt302 million net profit for the second quarter of 2013 (2Q13), up by 1,118 per cent year-on-year (YoY) and 133 per cent quarter-on-quarter (QoQ).
The result was 59 per cent higher than estimated, thanks to a fatter gross margin (GM) than assumed of 11.1 per cent (the assumption was 10 per cent) and a greater GFN net profit than modeled of Bt85 million (estimated Bt50m), reports The Nation of Thailand.
Sales were in line with the company's model. Gross profit exceeded the estimate by 12 per cent. GFPT booked an Bt8 million tax credit in 2Q13.
The robust YoY and QoQ profit jump was led by higher domestic and export chicken sales prices, greater export sales volume and a turnaround at GFN (GFPT holds 49 per cent). GFN has now posted black ink on its bottom-line for two consecutive quarters—Bt85 million for 2Q13 (against a Bt90 million net loss in 2Q12) and a profit for Bt27 million 1Q13—driven by the start-up of a new processed chicken line (capacity of 400 tonnes/month) in May and higher domestic and export chicken sales prices.
Total sales rose by seven per cent YoY and six per cent QoQ. GM jumped to 11.1 per cent from 6.9 per cent in 2Q12 and 8.3 per cent in 1Q13.
Animal feed sales dropped 16 per cent YoY (due to lower shrimp feed sales). Processed food revenue jumped 50 per cent YoY. Chicken meat posted Bt140m EBT for 2Q13, against a Bt97m LBT for 2Q12. Despite a drop in shrimp feed sales, the EBT of the feed business jumped 30 per cent YoY.
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