Oversupply of pigs in Asia weighed on CP Foods profits

Oversupply of pigs in Asia weighed on CP Foods profits

Charoen Pokphand Foods, the Thailand-based meat and seafood group, saw its earnings in the first half of the year rise despite a sharp fall in segment profits from its livestock division.

The company posted profit for the six months to the end of June of THB8.02bn (US$240.8m), up 3.1% on the corresponding period of 2016.

CP Foods booked a 10.5% rise in revenue to THB245.59bn. The company said in February it was targeting a 10% increase in sales for 2017 as a whole.

The group saw revenue from both its two divisions - livestock and aquaculture - rise. However, segment profits from its livestock business fell 77.3% to THB3.75bn. CP Foods said the oversupply of pigs in Asia, particularly in Vietnam Cambodia and Thailand, affected its results. The company said: "It is expected that the oversupply problem will be eased which it should help pull up pork price in Asia better than in the first half this year."

Last month, CP Foods struck a deal to buy Germany-based meat supplier Paulsen Food to further increase its presence in the EU.

In April, CP Foods made another acquisition in Europe, buying UK-based meat and ready-made products manufacturer Westbridge Food Group.