China’s CPF reports lower annual profit as China pork glut continues to weigh on performance

CHINA – Charoen Pokphand Foods reported a net profit of US$144 million in the first quarter of 2026, representing a 349% increase from the previous quarter as the company recovered from the livestock oversupply that affected results at the end of 2025, although earnings were still down about 43% compared with the same period last year.

The Thai food producer recorded first-quarter revenue of US$4.05 billion, a decline of roughly 5% year on year, with the company attributing the drop mainly to foreign exchange impacts related to converting overseas earnings into Thai baht.

Meanwhile, operations outside Thailand accounted for approximately 65% of total revenue during the quarter, with Vietnam contributing 18% of group sales and remaining the company’s second-largest market after Thailand.

China market remains under pressure

Chief Executive Officer Prasit Boondoungprasert said the company had seen an improvement in operating conditions after the heavy meat supply imbalance experienced late last year, adding that internal efficiency measures also supported the quarterly recovery.

However, he said the company’s China business continued to miss expectations because of continued oversupply in the pork market, which has kept pressure on prices and profitability.

At the same time, CPF said higher energy prices linked to tensions in the Middle East were increasing operating costs across transportation, packaging and feed ingredients, creating additional pressure on margins across several markets.

The company also pointed to softer consumer spending and weaker purchasing power in a number of countries where it operates, with management warning that some markets could face deflationary conditions if cautious spending patterns continue.

Focus on convenience food expansion

In response to rising input costs, CPF said it is increasing efforts to manage its integrated supply chain more efficiently while expanding its ready-to-eat food business across multiple countries.

Vietnam has been identified as one of the company’s priority markets for convenience food growth as demand for processed and ready-made products continues to expand in the country.

Looking ahead, CPF said it expects supply and demand conditions in the meat sector to move closer to balance during the second half of 2026 after prolonged oversupply in several markets.

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