CP Foods – Thailand’s leading corporation behind a billion-dollar FDI enterprise that is about to be listed on the Vietnamese stock exchange: The world’s top animal food company with a turnover of 16 billion USD
After a decade of outstanding growth, peaking in 2021 with sales of more than 111 billion Bath (approximately $3.6 billion), CP Vietnam has officially been approved by parent company CP Foods to register for a license. continue to become a public company through the issuance of common shares to minority shareholders.
In the past 10 years, CP Foods has continuously grown and occupied a high position in the Vietnamese market in all three fields of animal feed (Feed), farm (Farm) and food processing (Food). In the past year, through a deal worth 800 billion VND, the Thai enterprise also became a major shareholder of Sao Ta Foods (Fimex) – a large shrimp enterprise in Vietnam with a 25% stake. This inevitably makes many people ask: Who is CP Foods really, and to what extent?
Established in 1978, CP Foods is Thailand’s largest agricultural and food company, belonging to Charoen Pokphand Group of the Chearavanont Chinese-Thai family – a family with a 100-year history of doing business. In Vietnam, CP Foods is also one of the first large foreign enterprises to invest in our country in the post-Doi Moi period. Entering the Vietnamese market in 1993, the company brought the country’s first large-scale animal feed processing factory in Dong Nai. The company currently has a valuation of over 6 billion USD on the Thai exchange.
CP Group is the world leader in animal feed production Source: Watt Poultry
With an investment and operation network spanning 17 countries and exporting to 40 countries on 5 continents, CP Foods has in recent years always ranked first in the world in animal feed. According to the ranking of WATTPoutry, a Canadian livestock industry magazine, the company’s annual output is up to 27.6 billion tons, far surpassing names like De Heus (9 billion tons), Nutreco (9 billion tons) or even even Cargill (19.6 billion tons).
Even if the company experienced a sharp decline in revenue in its key market, China in 2021, CP Foods still has sales of up to 15.9 billion USD. Although the company ranks first in terms of production of animal feed, its revenue only accounts for ¼ of the total revenue of the whole enterprise, behind the field that accounts for the largest proportion of the company is still livestock, accounting for 54 % turnover. The remaining 21% belongs to the food processing segment. Besides the main source of revenue from the livestock segment, accounting for 85% of revenue, 15% of CP Food’s revenue comes from the seafood segment.
The company’s revenue structure by business lines, products and markets Source: Company’s financial statements
Regarding the market, Thailand is the country with the highest proportion of revenue at 31%. In addition, 64% came from branches operating in international markets and 6% from exports. Notably, in 2021, Vietnam (accounting for 22% of total revenue) also replaces China (6%) as the foreign market that brings the most revenue for CP Foods. In recent years, a number of foreign businesses recently acquired by CP Foods include Bellisio Foods, one of the largest US suppliers of frozen foods through a $1 billion deal, and Westbridge Foods, a UK poultry producer with sales of over £300 million.
Company structure Source: Financial Statements
The company also holds shares in four companies listed on three stock exchanges at the Hong Kong Exchange (Chia Tai Enterprises International Ltd), the Taiwan Stock Exchange (Charoen Pokphand EnterpriseTaiwan Co Ltd), and Thailand (CP All). PCL and MAKRO). A listed subsidiary of CP Foods, CP Pokphand (CPP), in charge of business operations in Vietnam and China, has delisted from the Hong Kong Stock Exchange (HKEX) through its acquisition decision 25.26 % of shares issued, transforming the company into a private company with 75% belonging to CP Foods. The decision was made to “allow the CPP to make strategic decisions focused on growth and long-term interests, free from the pressures of market expectations and stock prices that arise from being a company.” the public,” the company said.
CP Foods stock price Source: Google
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