Vietnam's CP revenue declines, still the world's second "gold mine"

(Dan Tri) - In the first quarter of 2025, Vietnam was the only market of CP Foods to record a decrease in revenue. However, Vietnam still maintained its position as the second largest market of the group, after its home country Thailand.

The first quarter 2025 financial report of Charoen Pokphand Foods Group (CP Foods, Thailand), the parent company of CP Vietnam Livestock Joint Stock Company, shows that the Vietnamese market still contributes quite a lot to the group's consolidated revenue structure.

Specifically, revenue in the Vietnamese market decreased by 9% compared to the same period, down to 27.6 billion baht (about 22,000 billion VND). However, Vietnam still maintained its position as CP Foods' second largest market globally, only behind the domestic market in Thailand.

Notably, CP Foods’ results showed that its global revenue increased by 3% in the first quarter. Of which, Vietnam was the only market to record a decline in revenue, while other markets such as Thailand, China, etc. all recorded growth during this period.

In the Vietnamese market, by product category, the livestock sector brought in the highest revenue for CP Foods with 24.8 billion baht (over 19,700 billion VND), down 6% year-on-year. The seafood sector contributed nearly 2.8 billion baht (over 2,200 billion VND), down 31% year-on-year.

Revenue structure by product of CP Foods (Source: CP Foods financial statements).

Regarding revenue structure by product, in the first quarter of 2025, the "Farm" segment (livestock and poultry farming) recorded revenue of 18.9 billion baht (about 15,000 billion VND), down 7% over the same period. The animal feed group also decreased by 19%, down to 6.3 billion baht (about 5,000 billion VND). The processed food group was the only segment that grew, with revenue increasing by 9% to 2.37 billion baht (about 1,900 billion VND).

In 2024, CP Foods will achieve a profit of 19.6 billion baht (about 15,600 billion VND), an impressive improvement compared to a loss of 5.21 billion baht (about 4,000 billion VND) in 2023. This change comes from the strong recovery of the pork business in Vietnam and China. This is also the company's highest profit since 2020.

In general comments on the Vietnamese market, CP Foods said that the continuous increase in pork prices has helped improve gross profit. According to CP Foods' estimates, pork prices will increase by 30% in 2 years (from Q1/2023 to Q1/2025).

CP Foods expects total revenue to grow 5% to 8% by 2025, with profits continuing to improve thanks to international operations, particularly in Vietnam and China.

CP Vietnam was granted an investment license in 1993 as a 100% foreign-invested company. In 2008, CP Vietnam Livestock Company Limited was officially transformed into CP Vietnam Livestock Joint Stock Company.

The parent company in Thailand is also accelerating the initial public offering (IPO) plan of CP Vietnam. Sharing with the media in March, the company's CEO said that after many years of waiting, the company is ready to start the IPO process as soon as it is licensed by the management agency in Vietnam.

Source: https://dantri.com.vn/kinh-doanh/cp-viet-nam-sut-giam-doanh-thu-van-la-mo-vang-thu-2-toan-cau-20250604120828298.htm