Charoen Pokphand Foods Public Co. Ltd. · SET:CPF
Charoen Pokphand Foods Public — Q1 2024 Earnings Presentation
43 slides from Charoen Pokphand Foods Public's earnings presentation, May 14, 2024
Slide 1: Q1/2024 Results Briefing
Q1/2024 Results Briefing Charoen Pokphand Foods Public Company Limited Investor Presentation, May 14, 2024 1 Results Briefing Q1/2024
Slide 2: Table of Content
Table of Content • Business Overview………………………….. 03-09 • Q1/2024 Financial Results…………… 10-16 • FY2024 Outlook……………………………. 17 Appendix A: 3Yr Historical Results B: Products & Raw Materials Price Trend C: Group of Associate Companies & Joint Ventures D: Product Sample & Retail Outlet Format Charoen P
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 170 billion Sales in FY2023 THB 586 billion (or ~USD4.6 billion) as of May13, 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 28.57* 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 Mar 31, 2024 % % to Sales Revenue 38% 62% CPF Thailand 1 CPF International Associates & Joint Ventures (2) % holding by CPF 36% direct & indirect 32% Domestic 26% CPP (76.24%) (1) TW:1215 CPE Taiwan (39.00%) CP Meiji (59.99%) Russia (100.00%) HyLife (Canada) (50.10%) 15
Slide 10: Performance Summary
Performance Summary QoQ Unit: THB, m Q1'23 Q1'24 %Change Sales Revenue 143,781 140,037 -3% Gross Profit Margin 10.2% 12.0% Selling and administrative expenses 11,746 12,019 2% EBITDA 12,686 13,858 9% EBITDA Margin 8.8% 9.9% G/L on FV of Biological Assets (41) 464 1,232% Financial Costs (6,068) (6,18
Slide 11: Q1/2024: Sales & Profit Margin by Business
Q1/2024: Sales & Profit Margin by Business In THB, m -3% Q1/2023 Q1/2024 143,781 140,037 +1% -5% 76,458 76,869 49,318 -5% -11% 46,798 6,791 11,214 6,425 9,945 Thai-Livestock Thai-Aqua Overseas-Livestock Overseas-Aqua TOTAL GPM 14.2% 12.3% 10.2% 14.1% 7.4% 11.9% 10.6% 9.7% 10.2% 12.0% OPM** 6.6% 4.5%
Slide 12: Q1/2024: Sales Structure by Business
Q1/2024: Sales Structure by Business Sales Breakdown Livestock Aquaculture TOTAL Q1'23 Q1'24 %Change Q1'23 Q1'24 %Change Q1'23 Q1'24 %Change Thailand 49,318 46,798 -5% 6,791 6,425 -5% 56,109 53,223 -5% Domestic 42,710 39,218 -8% 5,774 5,343 -7% 48,484 44,561 -8% Export 6,608 7,580 15% 1,017 1,082 6%
Slide 13: Q1/2024: Sales Structure by Products
Q1/2024: Sales Structure by Products Feed Farm Food 51% 62% 55% Thailand Vietnam 67% China Others 52% 23% TOTAL 26% 24% 22% 27% 7% 38% 24% 22% THB 53,223 m THB 30,384 m THB 6,114 m THB 50,316 m THB 140,037 m % to sales 38% % to sales 22% % to sales 4% % to sales 36% % to sales 100% Sales Breakdown b
Slide 14: Financial Status (As of Mar 31, 2024)
Financial Status (As of Mar 31, 2024) Interest Bearing Debt: THB 486,136 m* Net Debt to Equity & Net Debt to EBITDA (THB, m) Net D/E 1.59x 485,050 486,136 1.51x 1.55x 479,748 1.36x 430,717 2021 2022 2023 Q1/24 Net D/EBITDA 9.5x 2021 2022 2023 Q1/24 9.4x 7.1x 6.8x Current Portion, 17% Cost of Debts 2
Slide 15: FY2024 Investment and Financing Activities
FY2024 Investment and Financing Activities 1Q 2Q 3Q 4Q February Thai Baht Debenture THB 14,000 m by CPF Tenor 1.8,5,7,10 yrs. (@ 3.6%) Change in status of CPF Poland S.A. CPF Poland S.A. has changed its status from a subsidiary to a joint venture Charoen Pokphand Foods Public Company Limited Results
Slide 16: CPF's Investment in Listed Companies
CPF’s Investment in Listed Companies As of Mar 31, 2024 Stock Price Market Cap. CPF Holding Holding Value (Local Curr.) (THB mm) (%) (THB mm) CPALL THB 54.75 491,825 34.45% 169,434 (SET:CPALL) CP AXTRA THB 31.25 330,635 8.85% 29,261 (SET:CPAXT) TRUE THB 7.60 262,596 1.28% 3,361 (SET:TRUE) CPE TWD 11
Slide 17: FY2024 Outlook
FY2024 Outlook Growth Target Continue to cautiously expand Prudent investment High value product portfolio expansion R&D driven products and process Improvement of operation efficiency Key Drivers & Focus • Expected lower cost of raw material • Easing excess supply from illegal pork in Thailand • Ef
Slide 18: Appendix A
Appendix A Highlights : 3Yr Historical Results Charoen Pokphand Foods Public Company Limited 18 Results Briefing Q1/2024
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% 14.1% 13.0% 12.3% 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% 7.2% 8.7% 10.2% 8.9% 10.0% 6.6% 6.6% 7.1%6.8% 3.4
Slide 20: Thailand Operations – Export Destination
Thailand Operations – Export Destination FY2022 FY2023 Q1/2024 77% ASIA ASIA ASIA 80% 83% Farm Farm Farm 9% EU 3% 11% 1% 11% 8% EU 1%3%13% OTHERS OTHERS OTHERS EU USA USA USA THB 9,369 million +35% THB 8,568 million -9% THB 2,042 million +35% ASIA ASIA ASIA 44% EU EU 42% 42% EU Food 46% Food 51% Foo
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% 6,091 40000 9.9% 10.9% 10.0% 7,903 3,560 30000 8.1% 8.0% 6.0% 20000 21,165 13,858 16,132 17,936 3,627 4.0% 10000 369 2.0% 3,258
Slide 23: Consolidated Net Profit, ROA and ROE
Consolidated Net Profit, ROA and ROE Net Profit ROA & ROE Gain on one time transaction Unit: THB, m Divestment and Dividend ROA Equity (Share in Profit of Associates) EBIT 145 2,613 1.8% 1.6% 3,745 -0.3% 0.2% 8,852 2021 2022 2023 Q1'24 2,452 4,167 ROA = Net Income (include Non-Controlling Interest )
Slide 24: Consolidated Net Profit- Quarterly
Consolidated Net Profit- Quarterly Unit : THB, m Q1 Q2 Q3 Q4 FY2021 FY2022 FY2023 Q1/2024 8,000 6,945 6,720 6,000 5,108 4,738 4,208 4,000 2,842 1,812 2,000 1,152 121 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -2,000 (793) (1,810) -4,000 (2,725) -6,000 (5,375) -8,000 Full Year : 13,028 13,970 (5,207) 1
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 0.11 0.35 0.25 (0.75) 0.40 0.40 0.00 2021 2022 2023 Q1'24 2021 2022
Slide 26: Appendix B
Appendix B Products & Raw Materials Price Trend Charoen Pokphand Foods Public Company Limited 26 Results Briefing Q1/2024
Slide 27: Average Farm Prices - Thailand
Average Farm Prices - Thailand Thailand’s Broiler price (THB/kg) Average Price 43.6 47.4 43.8 44.0 Y22 Y23 Y24 50.0 39.0 42.6 39.2 41.7 46.0 36.6 37.9 43.4 39.4 41.7 42.0 38.0 34.0 % Chg -9% +6% 30.0 26.0 22.0 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Current Price Thailand’s Pork price
Slide 28: Average Raw material Prices - Thailand
Average Raw material Prices - Thailand Thailand’s Corn price (THB/kg) Average Price 20.0 Y22 Y23 Y24 11.4 13.1 12.1 12.6 13.3 12.8 11.7 15.0 10.4 10.4 10.4 12.3 12.1 10.4 10.0 % Chg -2% -14% 5.0 0.0 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Current Price Thailand’s Soybean Meal price (TH
Slide 29: Vietnam: Average Market Price and Major Feed Raw Materials
Vietnam: Average Market Price and Major Feed Raw Materials 100,000 80,000 62,760 57,023 52,809 55,387 52,819 50,045 55,095 53,400 60,000 47,082 Swine 40,000 (VND/kg) 20,000 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 40,000 33,294 35,656 33,676 33,710 30,468 27,285 26,179 27,098 26,452 30,
Slide 30: India: Average Market Price and Major Feed Raw Materials
India: Average Market Price and Major Feed Raw Materials 150.0 113.8 100.0 95.7 102.8 98.9 94.2 100.0 82.9 77.5 78.6 50.0 Broiler (INR/kg) 0.0 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 500.0 367 400.0 303 327 313 275 280 263 280 292 300.0 Shrimp 200.0 (60 pieces) (INR/kg) 100.0 Q1'22 Q2'
Slide 31: Russia: Average Market Price and Major Feed Raw Materials
Russia: Average Market Price and Major Feed Raw Materials 140.0 122.6 118.6 108.6 109.7 115.0 120.0 105.8 104.0 100.9 96.6 100.0 Swine 80.0 (RUB/kg) 60.0 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 180.0 159.6 168.0 160.0 143.9 120.4 126.8 124.2 123.3 130.3 140.0 115.5 120.0 100.0 Broiler
Slide 32: Cambodia: Average Market Price and Major Feed Raw Materials
Cambodia: Average Market Price and Major Feed Raw Materials 20,000 16,000 12,732 11,514 11,093 12,000 9,395 8,572 8,117 8,068 7,237 7,287 Swine 8,000 (KHR/kg) 4,000 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 1,700 1,578 1,550 1,600 1,468 1,460 1,500 1,347 1,389 1,318 1,400 1,300 1,132 1,1
Slide 33: Philippines: Average Market Price and Major Feed Raw Materials
Philippines: Average Market Price and Major Feed Raw Materials 240.0 200.3 201.7 220.0 190.3 193.7 200.0 175.0 166.8 163.5 162.3 170.0 180.0 160.0 140.0 Swine 120.0 (RUB/kg) 100.0 80.0 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 140.0 117.7 113.4 114.7 110.3 120.0 99.1 107.2 98.8 95.0 93.8
Slide 34: China: Average Market Price and Major Feed Raw Materials
China: Average Market Price and Major Feed Raw Materials 40 22.4 24.6 14.6 15.1 15.2 14.4 16.1 15.3 14.9 20 Swine (RMB/kg) 0 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 4 2.9 3.0 3.0 3.0 3.0 2.9 3.0 2.9 2.6 2 Corn (RMB/kg) 0 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 6 5.3 4.6 4
Slide 35: Appendix C
Appendix C Group of Associate Companies & Joint Ventures Charoen Pokphand Foods Public Company Limited Results Briefing Q1/2024
Slide 36: Group of Associate Companies & Joint Ventures
Group of Associate Companies & Joint Ventures Associates Type of Business CPF's Direct and Indirect Interest (%) Arbor Acres Thailand Company Limited Broiler Breeder business 49.98 Ross Breeders Siam Company Limited Broiler Breeder business 49.99 CP All Public Company Limited Convenience store busin
Slide 37: Appendix D
Appendix D Product Samples & Retail Outlet Formats Charoen Pokphand Foods Public Company Limited Results Briefing Q1/2024
Slide 38: Food Retail Products
Food Retail Products Charoen Pokphand Foods Public Company Limited Results Briefing Q1/2024 38
Slide 39: Food Retail Products
Food Retail Products Charoen Pokphand Foods Public Company Limited Results Briefing Q1/2024 39
Slide 40: 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 Q1/2024 40
Slide 41: Food Service : Chester's
Food Service : Chester’s Charoen Pokphand Foods Public Company Limited Results Briefing Q1/2024 41
Slide 42: 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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