Charoen Pokphand: Higher sales prices double Q1 profits

The Jakarta Post ,  Jakarta   |  Wed, 05/20/2009 1:36 PM  |  Business

Publicly listed animal feed and processed chicken producer PT Charoen Pokphand Indonesia (CPI) more than doubled its first quarter net profits from a year earlier on higher selling prices.

It booked Rp 143.77 billion (about US$14 million) in net profits in the first three-month period of the year, representing a 101 percent rise from Rp 70.72 billion booked a year earlier, president director Thomas Effendy said Tuesday.

"The company put in a fairly good performance in the period due to rising chicken prices and the decline in commodity prices used for our raw materials," Thomas said.

In total, the company's net sales in the first quarter this year reached Rp 3.11 trillion, increasing by 8 percent from the same period last year.

The revenue came from three types of products: poultry feed 76.3 percent, day-old chickens 14.8 percent and processed chicken meat 8.6 percent.

The first quarter's performance follows an encouraging showing in 2008, when the company posted Rp 253.97 billion in net profits, from a Rp 185.44 billion profit in 2007. Net sales last year reached Rp 13.21 trillion, from Rp 8.67 trillion in 2007.

The profits would have been even higher had the firm not suffered currency losses of Rp 100 billion, said director Ong Mei Sian.

"The loss happened because 50 percent of our debts are in dollars. But, this year currency losses may fall as the rupiah is strengthening," she said. In 2008, the firm recorded Rp 379 billion in currency losses.

Charoen's total short-term loans amounted to Rp 1.2 trillion as of the end of 2008. Around $60 million of this debt will mature in mid-2010, Ong Mei said.

Turning to this year, Thomas is confident the company, a local subsidiary of the Thai conglomerate Charoen Pokphand Foods, would reach the targeted Rp 300 billion in net profits and Rp 14.5 trillion in sales by the end of the year.

Steps are being carried out to ensure the company's growth amid the current tough economic conditions, including a decision not to give out dividends and an Rp 200 billion cap on capital expenditure.

In 2008 Charoen produced 4.5 million tons of poultry feed, bred 607 million chicks, and processed 24,000 tons of chicken meat.

The company claims to hold a market share of 47 percent for broiler poultry feed, 33 percent for layer poultry feed, 41 percent for day-old-chick broilers, and 36 percent for day-old-chick layers. (mrs)

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