Charoen Pokphand Indonesia

Stock Quote Charoen Pokphand Indonesia - CPIN:

Business Summary

Charoen Pokphand Indonesia has several business segments:

• Poultry Feed
• Day old Chicks (DOC)
• Processed Chickens
• Others

Poultry feed, which is produced in various centers on Java, Sumatra and Sulawesi, is produced in the following forms: concentrate, mash, pellet or crumble. The company has various well known brands in this business segment, such as Hi-Pro, Bintang, Bonavite and Royal Feed.

The production of poultry feed is the largest business operation of the company as it accounts for over 70 percent of total revenue. The second largest revenue stream for the company, accounting for about 15 percent of total revenue, is day old chicks (DOC). Almost 9 percent of total revenue is accounted for by the processed chickens segment.

Corn and soybean are the two most important raw materials that are bought by Charoen Pokphand. Therefore, global prices of these two commodities influence profit numbers of the company. As such, weak harvest in the USA have an impact on the company's financial numbers.

From 2011 onward, the company has expanded its production facilities, including feed manufacturing plants, hatcheries as well as processed chicken facilities, outside its traditional strongholds on Java.

Charoen Pokphand Indonesia's Financial Highlights:

	2010	2011	2012	2013	2014	2015
Net Sales	15,077.8	17,958.0	21,310.9	25,663.0	29,150.3	30,107.7
Gross Profit	3,754.1	3,924.2	4,491.5	5,149.8	4,134.3	5,140.2
Income from Operations	2,837.4	3,009.2	3,458.7	3,578.3	2,638.2	3,488.1
Net Income	2,210.3	2,355.5	2,684.1	2,530.9	1,745.9	1,837.0
Total Assets	6,518.3	8,848.2	12,348.6	15,722.2	20,841.8	24,684.1
Total Liabilities	2,036.2	2,658.7	4,172.2	5,771.3	9,836.6	12,123.5
Earnings per Share¹	135	144	164	155	107	112
Cash Dividend per Share¹	39,8	42	46	46	18	29

^{in billion IDR rupiah unless otherwise stated
¹ in IDR rupiah
Source: Charoen Pokphand Indonesia, Annual Report 2015}

Prospects of the poultry feed industry in Indonesia are good as the per capita poultry meat consumption in Indonesia is one of the lowest in the region, while the country - having a huge population of more than 250 million people - is characterized by robust economic growth which translates into increasing per capita GDP and purchasing power. This is expected to result in more poultry meat consumption in the years ahead.