BANGKOK, Feb 26 (Reuters) - Charoen Pokphand Foods Pcl (CP Foods), Thailand’s largest agribusiness, on Monday said net profit for 2017 rose 3.78 percent on year to 15.3 billion baht ($488.66 million), driven by growth in its overseas markets.
The full-year results were in line with estimates of four analysts polled by Reuters.
Operations in its 16 overseas markets contributed to 64 percent of revenue, up from 62 percent in 2016, chairman of the Executive Committee, Adirek Sripratak, said in a statement adding that CP Foods saw growth opportunities in China, Vietnam, Russia, India and the United States.
Sales revenue rose 8 percent from a year ago to 501.51 billion baht, but missed the company’s own target of 10 percent growth.
This year it expects sales revenue to grow 5-8 percent, Chief Executive for Agro-Industrial Business, Sooksunt Jiumjaiswanglerg, said.
CP Foods, controlled by Thai billionaire Dhanin Chearavanont, said there were challenges in its Asian pork business as prices had dropped below production costs, especially in Vietnam, but the situation was easing.
Last year, Thai pork farmers urged the government to deny the U.S. entry into its $3.5 billion pork market.
Opening the local pork market will affect CP Foods, which derives 30 percent of revenue from sales in Thailand.
$1 = 31.3100 baht Reporting by Chayut Setboonsarng; Editing by Sunil Nair