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C.P. Pokphand Announces 2011 Annual Results

2012-03-28 08:53 1189

Net Profit Up 30% on Strong Performance of Core Agri-Food Business

Continued Growth in China Propels Feed Business to New Heights; Business Expansion in Vietnam Further Strengthens Its Position as Market Leader

HONG KONG, March, 28, 2012 /PRNewswire-Asia/ --

FINANCIAL HIGHLIGHTS

  For the year ended 31 December 
US$ (million) 2011  2010
Turnover   3,623  1,951
Profit Attributable to Owners of the Company  173  133
Gross Profit  496  310
EBITDA  346  218
Basic Earnings per Share (US cents)   0.94  1.20
Diluted Earnings per Share (US cents)  0.79  0.78
Final Dividend (HK cents)   2.0  1.6

C.P. Pokphand Co. Ltd.(“CPP” or together with its subsidiaries, the “Group”; SEHK stock code: 43), the leading agri-food player in China and Vietnam, today announced its annual results for the year ended 31 December 2011.  During the year under review, the Group’s profit attributable to its owners grew 30.4% to US$173 million (2010: US$133 million).  Total turnover amounted to US$3,623 million (2010: US$1,951 million), of which the feed (China), integrated agri-food (Vietnam) and chlortetracycline businesses contributed 78.7%, 18.1% and 3.2%, respectively.  Gross profit grew from US$310 million to US$496 million, with gross profit margin at 13.7% or 15.3% excluding realized fair value changes on livestock (2010: 15.9%).  EBITDA grew from US$218 million to US$346 million.  Basic and diluted earnings per share were US cents 0.94 (2010: US cents 1.20) and US cents 0.79 (2010: US cents 0.78), respectively.  The Board recommended a final dividend of HK2.0 cents per share for the period under review (2010: HK 1.6 cents).

The strong performance of the Group’s core agri-food business in China was mainly attributable to its focus on developing and promoting high-margin feed products and the expansion of the Group’s sales and technical service teams in the market.  Turnover of the Group’s feed business in China increased 35.2% year-on-year to US$2,850 million, of which complete and concentrate feed accounted for 93.8% (with complete and concentrate swine, poultry, aqua and other animal feed products making up 43.3%, 37.9%, 8.6%, and 4.0%, respectively), and premix feed for 5.3%.  Total feed sales volume grew 24.8% year-on-year to 5.4 million tons, while gross margin remained at 14.6%.

The Group completed the acquisition of the leading integrated agri-food business in Vietnam by the end of July 2011. The Group’s operation in Vietnam, with its integrated “feed-farm-food” businesses, sets the industry’s benchmark for quality products and services.  In late 2011, the business was named “Best Feed Miller in 2011” at the 3rd Vietnam Feed & Livestock Industry Conference, an accolade that further attests the Group’s leading market position there.  For the period from August to December 2011, the acquisition contributed turnover of approximately US$655 million.

Looking ahead, despite expectations of persisting global economic volatility and slower macroeconomic growth, the Group believes that demand for agri-food products in its operating markets will continue to be driven by rising consumption and ever-increasing desire for safe, quality food products.  The governments of China and Vietnam will continue to promote agricultural developments and speed up the commercialization of farming and feed milling.  This plays to the Group’s strengths in product quality and farming technology while boosting its competitiveness and market-leadership standing.

About C.P. Pokphand

C.P. Pokphand (CPP) is the leading animal feed producer in China and the leading agri-food player in Vietnam with consolidated revenues of over US$3.5 billion.  In China, CPP operates nationally with around 80 feed mills in 28 provinces, boasts the largest distribution and technical service network, and offers some of the highest quality products and animal nutrition solutions.  In Vietnam, CPP’s integrated agri-food operations encompass the entire food production chain from feed manufacturing and distribution to livestock rearing and aquaculture cultivation to processing and distribution of value-added food products.  CPP generates consistent growth by offering and utilizing the latest technologies and delivering outstanding products, services and value to its customers.  CPP strives to become the Kitchen of the World and to be the Energy Source for People.

For media enquiries, please contact Hill+Knowlton Strategies Asia:

KW Lam Tel: (852) 2894 6218 Email: kw.lam@hkstrategies.com 
Linda Pui Tel: (852) 2894 6378 Email: linda.pui@hkstrategies.com 
Source: C.P. Pokphand Co. Ltd.
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