CPF Announces Interim Dividend Payment Following Shrimp Disease14 August 2013
THAILAND - Charoen Pokphand Foods (CPF) will pay an interim dividend of Bt0.25 per share after posting revenue of Bt180.61 billion and net profit Bt2.6 billion in the first half of this year. The company did not achieve its targets for the first half. This was mainly caused by the shrimp disease early mortality syndrome.
EMS occurred late last year, which slowed the shrimp industry in Thailand, and it has not yet returned to normal.
The Nation reports that the dividend payment will be made on 6 September.
President and chief executive Adirek Sripratak said CPF had faced several challenges including the oversupply of broilers and swine in Thailand between the 2011 floods and early this year. The supply now has returned to normal.
Shrimp farmers have delayed resuming full operations while waiting for evidence that disease-prevention measures have been successful. Thus CPF's seafood-related businesses have been affected significantly, especially the shrimp-feed business.
However, the present findings indicate that the prevention measures are likely to be effective, and CPF expects to see more shrimp gradually returning to full operation. As it faces such difficulties, CPF has reviewed its investment plans, focusing on investments that are in line with its core strategies. It recently announced a 60-per cent joint investment in CP-Meiji Co, as it foresees that this business has growth potential, especially for export to Asian countries.
CPF also announced investment in swine business in Russia, and it is in the process of offering to purchase shares from minority shareholders. The transaction is expected to be completed this year, Adirek said.
He insisted that CPF's total sales would grow by more than 10 per cent this year thanks to rising meat prices. Moreover, the company is focusing more on value-added goods as well as expansion through businesses will high potential to create more profit, such as the acquisition of more shares in CP-Meiji and the purchase of pig farms in Russia.
TheFishSite News Desk