Charoen Pokphand Foods PLC (CPF) reported Bt512,704 million in sale revenue and Bt13,028 million in net profit in 2021. The dividend of Bt0.65 per share was approved for the year.
The 2021 sale revenue dropped by 13% from the previous year due to the transfer of Chia Tai Investment Co., Ltd. from a subsidiary to an associate in December 2020. Excluding this change, CPF's sale revenue would have increased by 10% on year.
The COVID-19 pandemic remained a key factor that influenced the operations in 2021as well as the lockdown measures especially in Thailand and Vietnam that put pressure on consumer purchasing power and raised the operating cost.
CPF's profitability rate dropped below the 2020 level due mainly to a sharp decline in pork prices in Vietnam and Thailand in the latter half of 2021. Exacerbating the situation was an increase in the raw material cost for feed mill production. CPF's investment gains also declined by Bt5,087 million from the 2020 level due to the poor performance of affiliates in China and Canada as well as CP All Public Company Limited (CP All).
Mr. Prasit Boondoungprasert, Chief Executive Officer of CPF, is convinced that the 2022 performance would show an improvement from 2021, on expectation that the economy would recover on the back of easing COVID-19 infection rate. Demands are expected to pick up. Meanwhile, the Company emphasizes the enhancement of production and sales efficiency through technology and innovation for continuous improvement in competitiveness and the business operations have been adjusted to accommodate the new normal.
CPF’s Board of Directors resolved to ask for shareholders’ approval at the 1/2022 Annual General Meeting for the dividend payment of Bt0.65 per share. After the interim dividend payment of Bt0.40 on 10 September 2021, shareholders are entitled to the remaining dividend payment of Bt0.25. As the dividend comes from earnings after tax loss, dividend recipients are subjected to withholding tax accordingly to the Revenue Code. Individual recipients are not entitled to a tax credit, as specified in Section 47 (2) under the Revenue Code.
