Thailand’s CP Foods to invest $763m in 2015 in expansion

Thailand-based meat and animal feed producer Charoen Pokphand Foods (CP Foods) is planning to spend between $611m and $763m in 2015, primarily on overseas expansions and acquisitions.

The company’s annual investment budget will be the same for the next five years.

CP Foods is currently targeting an annual sales growth of 10%. The company earns two-third of its revenue from overseas markets, where it is aiming to reach revenue growth of 15%.

Reuters quoted CEO Adirek Sripratak as saying that the company is focused on high-growth markets in Japan, Russia, South Korea and the Philippines.

CP Foods specialises in operating in the livestock (including swine, broilers, layers and ducks) and aquaculture (comprising shrimp and fish) businesses. It also manufactures semi-cooked and fully-cooked meat, food products and ready meals.

The company is also shutting down its non-core operations to strengthen its balance sheet. It is considering selling off non-core assets of the Hong Kong-listed CP Pokphand, which has businesses in China and Vietnam, and putting the new entity on the Hong Kong stock exchange.

CP Foods, one of the biggest shrimp farmers in the world, is expecting to revive its struggling shrimp business, which was hit by the Early Mortality Syndrome (EMS) disease for more than two years.

The company sells its products under brands such as CP, Kitchen Joy, Five Stars, BK and BKP, in addition to private brands.