Nugget Fiesta Producers Owned By Thai Conglomerate Cheavaranont Brothers Raise Sales Of IDR 28.63 Trillion But Profit Drops To IDR 2.41 Trillion

Photo: Doc. Charoen Pokphand Indonesia

JAKARTA - The poultry farming and animal feed company owned by the Thai conglomerate Cheavaranont Brothers, PT Charoen Pokphand Indonesia Tbk (CPIN) posted an increase in sales throughout the first semester of 2022. However, pressure on commodity prices has caused the company's profit to decline compared to the six-month period in early 2021.

In the company's published financial report, quoted on Wednesday, August 3, Charoen Pokphand's sales rose 12.43 percent on an annual basis to IDR 28.63 trillion, from IDR 25.46 trillion in the first semester of 2022.

CPIN sales were mainly supported by broiler sales which contributed IDR 16.30 trillion, an increase of 26.76 percent year-on-year (YoY) compared to IDR 12.86 trillion in the same period in the previous year.

Meanwhile, the animal feed segment, which was the second largest contributor with sales of IDR 6.67 trillion, actually fell 7.26 percent YoY from IDR 7.19 trillion in the first semester of 2021. Along with the increase in sales, Charoen Pokphand's cost of goods sold increased by 17, 68 percent to IDR 23.74 trillion, compared to IDR 20.17 trillion in the first semester of 2021.

The increase in the cost of goods sold was mainly contributed by the post of raw materials used which recorded an increase of 19.47 percent on an annual basis to IDR 20.33 trillion. In January-June 2021, the cost of raw materials is at IDR 17.01 trillion.

The increase in the cost of goods sold which was higher than the increase in sales made CPIN's gross profit erode 7.56 percent YoY from IDR 5.29 trillion in the first semester of 2021 to IDR 4.89 trillion in the first semester of 2022.

Meanwhile, profit for the period attributable to owners of the parent entity was 14.68 percent to only IDR 2.41 trillion from IDR 2.83 trillion in the same period in the previous year. On the other hand, Charoen Pokphand's total assets increased by IDR 3.64 trillion or 10.28 percent to IDR 39.09 trillion as of June 30, 2022, compared to IDR 35.44 trillion on December 31, 2021.

The increase was mainly due to an increase in inventories of IDR 2.46 trillion during the first semester of 2022. Charoen Pokphand's liabilities also increased by IDR 3.00 trillion to IDR 13.29 trillion due to an increase in short-term bank loans from IDR 2.12 trillion to IDR 6.71 trillion.