Charoen Pokphand Foods Public Co. Ltd. · SET:CPF
Charoen Pokphand Foods Public — FY2023 Earnings Presentation
49 slides from Charoen Pokphand Foods Public's earnings presentation, Feb 28, 2024
Slide 1: FY2023 Results Briefing
FY2023 Results Briefing Investor Presentation, Feb 28, 2024 Charoen Pokphand Foods Public Company Limited 1 Results Briefing FY2023
Slide 2: Table of Content
Table of Content • Business Overview………………………….. 03-09 • FY2023 Financial Results……………… 10-16 • FY2024 Outlook……………………………. 17 Appendix A: 3Yr Historical Results B: Products & Raw Materials Price Trend C: Highlights Q4/2023 Results D: Group of Associate Companies & Joint Ventures E: Product Sample &
Slide 3: Why Invest in CPF
Why Invest in CPF ''Aiming to compete in the front line of the food industry, we use resources properly and environmental friendly. The Company takes into account the interests of all stakeholders to ensure sustainable growth, while being able to generate appropriate return to shareholders" One of t
Slide 4: Sustainable Kitchen of the World
Sustainable Kitchen of the World GRC Protecting our Climate “Take action towards positive environmental impact throughout our value chain ” Improving Quality Living of People Food Security Biodiversity & “Create positive social impact in the lives of Ecosystems employees and individuals throughout o
Slide 5: Company Highlight
Company Highlight Market Cap THB 153 billion Sales in FY2023 THB 586 billion (or ~USD4.2 billion) as of Feb27, 2024 (or ~USD16.2 billion) • 8,414 million shares Livestock, Sales Breakdown TH-Domestic, (paid-up) with par THB 1.00 per share 87% Feed, 32% TH-Export, 24% 6% • Book Value THB 27.43* per s
Slide 6: Vertically Integrated Business in Thailand
Vertically Integrated Business in Thailand The integrated food process to offer top-quality products in terms of nutrition, taste, food safety, and traceability with the focus to maintain world-class, modern production process as well as efficient and ecofriendly consumption of natural resources. 1
Slide 7: CPF Geographical Footprints
CPF Geographical Footprints Russia UK Belgium Türkiye Poland • Livestock feed Food & Trading Ready to eat foods Livestock feed & • Hatchery farm • Swine farming business Chicken farm • Food processing plants • Chicken integrated business • Seafood business Operations and investment in business • Pla
Slide 8: Our Strategy for Growth
Our Strategy for Growth Globalization Digital expand market in 17 Transformation existing countries by utilize digital tools to establishing a proper improve operation business model suitable efficiency and to better for each strategic serve needs of customer. market • Smart Farm • Smart Factory • R
Slide 9: CPF Operation Structure
CPF Operation Structure as of Dec 31, 2023 % % to Sales Revenue 38% 62% CPF Thailand 1 CPF International Associates & Joint Ventures (2) % holding by CPF 35% direct & indirect 32% Domestic 27% CPP (76.24%) (1) TW:1215 CPE Taiwan (39.00%) CP Meiji (59.99%) Russia (100.00%) HyLife (Canada) (50.10%) 16
Slide 10: Performance Summary
Performance Summary YoY QoQ Unit: THB, m FY2022 FY2023 %Change Q4/2022 Q4/2023 %Change Sales Revenue 614,897 585,844 -5% 159,048 147,319 -7% Gross Profit Margin 13.3% 10.4% 11.0% 9.2% Selling and administrative expenses 54,879 55,361 1% 14,887 14,910 0% EBITDA 66,043 47,578 -28% 12,424 9,001 -28% EB
Slide 11: FY2023: Sales & Profit Margin by Business
FY2023: Sales & Profit Margin by Business In THB, m -5% FY2022 FY2023 614,197 585,844 -6% -1% 335,164 316,296 195,358 -4% -12% 193,310 28,998 54,677 27,945 48,293 Thai-Livestock Thai-Aqua Overseas-Livestock Overseas-Aqua TOTAL GPM 18.9% 10.9% 8.5% 9.2% 11.2% 10.6% 8.7% 8.5% 13.3% 10.4% OPM** 10.4% 1
Slide 12: FY2023: Sales Structure by Business
FY2023: Sales Structure by Business Sales Breakdown Livestock Aquaculture TOTAL FY2022 FY2023 %Change FY2022 FY2023 %Change FY2022 FY2023 %Change Thailand 195,358 193,310 -1% 28,998 27,945 -4% 224,356 221,255 -1% Domestic 168,024 163,132 -3% 23,183 23,228 0% 191,207 186,360 -3% Export 27,334 30,178
Slide 13: FY2023: Sales Structure by Products
FY2023: Sales Structure by Products Feed Farm Food 51% 65% 54% Others 50% 24% TOTAL Thailand 29% Vietnam 64% China 25% 23% 26% 7% 35% 25% 22% THB 221,255 m THB 116,053 m THB 39,549 m THB 208,987 m THB 585,844 m % to sales 38% % to sales 20% % to sales 7% % to sales 35% % to sales 100% Sales Breakdow
Slide 14: Financial Status (As of Dec 31, 2023)
Financial Status (As of Dec 31, 2023) Interest Bearing Debt: THB 479,748 m* Net Debt to Equity & Net Debt to EBITDA (THB, m) Net D/E 1.51x 1.59x 485,050 479,748 1.25x 1.36x 430,717 384,246 2020 2021 2022 2023 Net D/EBITDA 9.5x 2020 2021 2022 2023 7.1x 6.8x 3.6x Current Portion, 10% Cost of Debts 202
Slide 15: FY2023 Investment and Financing Activities
FY2023 Investment and Financing Activities 1Q 2Q 3Q 4Q March April September November Disposal of investment in CP-Uoriki Co., Ltd. Withdrawal of CTI listing Reported a Decrease in Paid- CP Chozen Ltd. Import and distribute seafood products Application up Capital In an amount of THB 100.8 m and RTE
Slide 16: CPF's Investment in Listed Companies
CPF’s Investment in Listed Companies As of Dec 31, 2023 Stock Price Market Cap. CPF Holding Holding Value (Local Curr.) (THB mm) (%) (THB mm) CPALL THB 56.00 503,054 34.45% 173,302 (SET:CPALL) CP AXTRA THB 27.00 285,669 8.85% 25,282 (SET:CPAXT) TRUE THB 5.05 174,488 1.28% 2,233 (SET:TRUE) CPE TWD 96
Slide 17: FY2024 Outlook
FY2024 Outlook Growth Target Continue to cautiously expand Prudent investment Unlock value through spin off High value product portfolio expansion Key Drivers & Focus • Expected lower cost of raw material • Easing excess supply from illegal import of pork in Thailand • Efficiency improvement to lowe
Slide 18: Appendix A
Appendix A Highlights : 3Yr Historical Results Charoen Pokphand Foods Public Company Limited 18 Results Briefing FY2023
Slide 19: Gross Profit Margin & Operating Profit Margin
Gross Profit Margin & Operating Profit Margin GPM GPM Thai-Livestock OPM ** Thai-Aqua OPM ** 25.0% 19.1%21.3%19.4% 24.0% 20.0% 17.1% 15.4% 19.0% 15.9% 14.7% 14.4% 13.0% 13.0% 11.8% 15.0% 11.1% 9.9% 10.9% 9.5% 14.0% 9.9% 10.4%11.0% 9.8% 7.6% 8.7% 10.2% 10.0% 6.6% 7.2% 6.6% 7.1%6.8% 3.4% 4.7% 9.0% 5.2
Slide 20: Thailand Operations – Export Destination
Thailand Operations – Export Destination FY2021 FY2022 FY2023 ASIA ASIA ASIA 78% 77% 80% Farm Farm Farm 6% 9% EU 7% 7% EU 3% 11% 1% 11% 8% EU OTHERS OTHERS OTHERS USA USA USA THB 6,951 million -18% THB 9,369 million +35% THB 8,568 million -9% ASIA ASIA ASIA 45% 44% EU 42% EU EU Food Food 46% Food 51
Slide 21: Consolidated Income Statement Highlight
Consolidated Income Statement Highlight Full Year FY2021 FY2022 % Change FY2023 % Change Net sales 512,704 614,197 20% 585,844 -5% Gross Profit Margin (%) 12.9% 13.3% 10.4% Selling and Administrative Expenses 50,609 54,879 8% 55,361 1% Gain / (Loss) from FX 651 93 -86% 1,023 1000% EBIT 19,222 30,778
Slide 22: CAPEX & EBITDA
CAPEX & EBITDA CAPEX EBITDA Unit: THB, m Unit: THB, m EBITDA Margin% 70000 66,043 20.0% CPP CPF 55,882 18.0% 60000 16.0% 47,578 27,256 50000 14.0% 24,035 10.8% 21,496 12.0% 40000 6,091 10.9% 10.0% 7,903 3,560 30000 8.1% 8.0% 6.0% 20000 21,165 16,132 17,936 4.0% 10000 2.0% 0 0.0% 2021 2022 2023 2021
Slide 23: Consolidated Net Profit, ROA and ROE
Consolidated Net Profit, ROA and ROE Net Profit ROA & ROE Unit: THB, m Gain on one time transaction Divestment and Dividend ROA Equity (Share in Profit of Associates) EBIT 145 2,613 1.8% 1.6% -0.5% 3,745 8,852 2021 2022 2023 2,452 ROA = Net Income (include Non-Controlling Interest )/Average Total As
Slide 24: Consolidated Net Profit- Quarterly
Consolidated Net Profit- Quarterly Unit : THB, m Q1 Q2 Q3 Q4 FY2021 FY2022 FY2023 8,000 6,945 6,720 6,000 5,108 4,738 4,208 4,000 2,842 1,812 2,000 121 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -2,000 (793) (1,810) -4,000 (2,725) -6,000 (5,375) -8,000 Full Year : 13,028 13,970 (5,207) Net Profit * Note:
Slide 25: EPS & Dividends per Share
EPS & Dividends per Share Earnings Per Share Dividends Unit : THB Per Share Unit : THB Per Share Final Dividend Interim Dividend Dividend Semi-annually, not less than 30% of Policy consolidated annual net profit 1.69 1.56 0.75 0.65 0.25 0.35 (0.75) 0.40 0.40 0.00 2021 2022 2023 2021 2022 2023 Charoe
Slide 26: Appendix B
Appendix B Products & Raw Materials Price Trend Charoen Pokphand Foods Public Company Limited 26 Results Briefing FY2023
Slide 27: Average Farm Prices - Thailand
Average Farm Prices - Thailand Thailand’s Broiler price (THB/kg) Average Price 43.6 47.4 43.8 Y21 Y22 Y23 50.0 39.0 42.6 39.2 40.0 46.0 34.2 36.6 37.9 29.7 43.4 39.4 42.0 38.0 30.2 29.3 34.0 24.9 % Chg +46% -9% 30.0 26.0 22.0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Cu
Slide 28: Average Raw material Prices - Thailand
Average Raw material Prices - Thailand Thailand’s Corn price (THB/kg) Average Price 20.0 Y21 Y22 Y23 11.4 13.1 12.1 12.6 13.3 12.8 11.7 15.0 9.4 9.5 10.5 10.8 10.4 10.3 10.0 12.3 12.1 10.0 % Chg +23% -2% 5.0 0.0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Current Price Th
Slide 29: Vietnam: Average Market Price and Major Feed Raw Materials
Vietnam: Average Market Price and Major Feed Raw Materials 100,000 77,231 80,000 68,813 62,760 51,517 52,809 55,387 52,819 50,045 55,095 57,023 47,082 60,000 41,602 Swine 40,000 (VND/kg) 20,000 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 40,000 33,294 35,656 33,676 33,710
Slide 30: Türkiye: Average Market Price and Major Feed Raw Materials
Türkiye: Average Market Price and Major Feed Raw Materials 60.00 50.0 50.00 37.0 40.3 33.7 40.00 21.3 23.4 30.00 14.6 17.9 Broiler 20.00 7.3 8.0 9.2 10.3 (TRY/kg) 10.00 0.00 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 8.00 6.2 6.3 7.00 5.6 5.7 5.9 5.9 6.1 6.00 4.3 5.00 4.
Slide 31: India: Average Market Price and Major Feed Raw Materials
India: Average Market Price and Major Feed Raw Materials 150.0 113.8 106.1 100.0 95.7 102.8 98.9 74.5 77.0 85.9 82.9 77.5 78.6 100.0 50.0 Broiler (INR/kg) 0.0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 500.0 352 367 400.0 312 303 303 327 313 277 275 280 263 280 300.0 Shr
Slide 32: Russia: Average Market Price and Major Feed Raw Materials
Russia: Average Market Price and Major Feed Raw Materials 140.0 123.1 122.6 118.6 115.5 110.4 105.8 104.0 108.6 109.7 120.0 102.4 100.9 96.6 100.0 Swine 80.0 (RUB/kg) 60.0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 180.0 159.6 168.0 160.0 130.3 140.0 118.4 127.0 120.4 12
Slide 33: Cambodia: Average Market Price and Major Feed Raw Materials
Cambodia: Average Market Price and Major Feed Raw Materials 20,000 16,000 14,032 13,901 12,541 12,732 11,514 11,093 12,000 9,643 9,395 8,117 8,068 8,572 Swine 7,237 8,000 (KHR/kg) 4,000 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 1,700 1,578 1,550 1,600 1,468 1,460 1,500
Slide 34: Philippines: Average Market Price and Major Feed Raw Materials
Philippines: Average Market Price and Major Feed Raw Materials 240.0 200.3 220.0 190.3 193.7 200.0 161.7 170.0 175.0 166.8 163.5 162.3 170.0 180.0 144.7 156.0 160.0 140.0 Swine 120.0 (RUB/kg) 100.0 80.0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 140.0 117.7 113.4 114.7 1
Slide 35: China: Average Market Price and Major Feed Raw Materials
China: Average Market Price and Major Feed Raw Materials 40 32.1 22.4 24.6 19.9 14.9 15.8 14.6 15.1 15.2 14.4 16.1 15.3 20 Swine (RMB/kg) 0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 4 2.9 3.0 3.0 2.9 2.9 3.0 3.0 3.0 3.0 2.9 3.0 2.9 2 Corn (RMB/kg) 0 Q1'21 Q2'21 Q3'21 Q4
Slide 36: Appendix C
Appendix C Highlights : Q4/2023 Results Charoen Pokphand Foods Public Company Limited Results Briefing FY2023
Slide 37: Q4/2023 Results Highlights
Q4/2023 Results Highlights Consolidated Revenue Gross Profit Net Profit (THB millions) (THB millions) (THB millions) -7% YoY -22% YoY -93% YoY 159,048 147,319 17,479 13,569 1,812 121 Q4/22 Q4/23 Q4/22 Q4/23 Q4/22 Q4/23 Consolidated sales -7% Y-o-Y Gross profit margin Net profit margin Q4/22 11.0% Q4
Slide 38: Q4/2023: Sales & Profit Margin by Business
Q4/2023: Sales & Profit Margin by Business In THB, m -7% Q4/2022 Q4/2023 159,048 147,319 -8% 88,602 -9% 81,938 52,251 47,636 -10% +3% 7,342 10,853 11,139 6,606 Thai-Livestock Thai-Aqua Overseas-Livestock Overseas-Aqua TOTAL GPM 19.4% 8.7% 6.8% 5.2% 7.2% 10.1% 4.2% 7.7% 11.0% 9.2% OPM** 9.9% -1.5% 0.
Slide 39: Q4/2023: Sales Structure by Business
Q4/2023: Sales Structure by Business Sales Breakdown Livestock Aquaculture TOTAL Q4/22 Q4/23 %Change Q4/22 Q4/23 %Change Q4/22 Q4/23 %Change Thailand 52,251 47,636 -9% 7,342 6,606 -10% 59,593 54,242 -9% Domestic 44,677 39,303 -12% 5,219 5,361 3% 49,896 44,664 -10% Export 7,574 8,333 10% 2,123 1,245
Slide 40: Q4/2023: Sales Structure by Products
Q4/2023: Sales Structure by Products Sales Breakdown by Products Feed Farm Food TOTAL Q4/22 Q4/23 %Change Q4/22 Q4/23 %Change Q4/22 Q4/23 %Change Q4/22 Q4/23 %Change Thailand 12,897 12,026 -7% 32,715 27,326 -16% 13,981 14,890 7% 59,593 54,242 -9% Domestic 12,884 11,986 -7% 29,424 24,883 -15% 7,588 7
Slide 41: Appendix D
Appendix D Group of Associate Companies & Joint Ventures Charoen Pokphand Foods Public Company Limited Results Briefing FY2023
Slide 42: Group of Associate Companies & Joint Ventures
Group of Associate Companies & Joint Ventures As of Dec 31, 2023 Associates Type of Business CPF's Direct and Indirect Interest (%) Arbor Acres Thailand Co., Ltd. Broiler Breeder business 49.98 Ross Breeders Siam Co., Ltd. Broiler Breeder business 49.99 CP ALL Public Company Limited Convenience stor
Slide 43: Appendix E
Appendix E Product Samples & Retail Outlet Formats Charoen Pokphand Foods Public Company Limited Results Briefing FY2023
Slide 44: Food Retail Products
Food Retail Products Charoen Pokphand Foods Public Company Limited Results Briefing FY2023 44
Slide 45: Food Retail Products
Food Retail Products Charoen Pokphand Foods Public Company Limited Results Briefing FY2023 45
Slide 46: Food Service : Five Stars Chain
Food Service : Five Stars Chain More Than 7,000 Outlets Vietnam India Cambodia Laos Philippines Charoen Pokphand Foods Public Company Limited Results Briefing FY2023 46
Slide 47: Food Service : Chester's
Food Service : Chester’s Charoen Pokphand Foods Public Company Limited Results Briefing FY2023 47
Slide 48: Disclaimer
Disclaimer This presentation contains some information from other sources that Investor Relations Office CPF does not make any representations regarding the use, validity, accuracy, or reliability of, or the results of the use of information, data Charoen Pokphand Foods Public Company Limited but no
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Charoen Pokphand Foods Public Company — FY2023 Earnings Presentation on 6ix