Robust Quarterly Results from GFPT14 August 2013
THAILAND - GFPT has reported a 302-million-baht (THB) net profit for the second quarter of 2013 (2Q13), up by 1,118 per cent year-on-year (YoY) and 133 per cent quarter-on-quarter (QoQ).
The result was 59 per cent higher than estimated, thanks to a wider gross margin (GM) than assumed of 11.1 per cent (the assumption was 10 per cent) and a greater GFN net profit than modeled of THB85 million (estimated THB50 million), reports The Nation of Thailand.
Sales were in line with the model. Gross profit exceeded the estimate by 12 per cent. GFPT booked a THB8-million tax credit in 2Q13.
The robust YoY and QoQ profit jump was led by higher domestic and export chicken sales prices, greater export sales volume and a turnaround at GFN (GFPT holds 49 per cent). GFN has now posted black ink on its bottom-line for two consecutive quarter - THB85 million for 2Q13 (against a THB90-million net loss in 2Q12) and a profit for THB27 million 1Q13, driven by the start-up of a new processed chicken line (capacity of 400 tonnes per month) in May and higher domestic and export chicken sales prices.
Total sales rose by seven per cent YoY and six per cent QoQ. GM jumped to 11.1 per cent from 6.9 per cent in 2Q12 and 8.3 per cent in 1Q13.
Chicken meat sales rose 25 per cent YoY due to higher prices and sales volumes.
Animal feed sales dropped 16 per cent YoY (due to lower shrimp feed sales).
Processed food revenue jumped 50 per cent YoY. Chicken meat posted THB140 million in Earnings before Tax (EBT) for 2Q13, against a THB97-million Loss before Tax (LBT) for 2Q12. Despite a drop in shrimp feed sales, the EBT of the feed business jumped 30 per cent YoY.
The 2Q13 mean domestic chicken price was THB46.3 per kilo, up by 24 per cent YoY and 14 per cent QoQ. The 2Q13 mean export price was US$4,400 per tonne, up by 12 per cent YoY and five per cent QoQ. 2Q13 export volume was 1,850 tonnes/month, up by 13 per cent YoY and 5.0 per cent QoQ.
The Nation reports that GFPT now forecasts a THB350-million net profit for 3Q13 - revised up from THB250-300 million or 16 per cent QoQ and a turnaround from a THB24-million net loss in 3Q13.
The drivers are:
- a sustained strong domestic chicken price (THB47 per kg, up by 32 per cent YoY and one per cent QoQ)
- higher export prices (US$4,500 per tonne, up by eight per cent YoY and three per cent QoQ)
- higher export volumes (1,900 tonnes per month, up by 16 per cent YoY and three per cent QoQ) and
- an 11 per cent QoQ rise in GFN's net earnings to THB95 million.
GFPT has upgraded its financial year (FY) 2013 earnings forecast by 20 per cent to THB980 million to reflect a greater expectation for equity income from GFN (from THB24 million to THB222 million), due to higher domestic chicken and export prices and a wider GM, reports The Nation. The YE13 PEG-based target price rises 24 per cent to THB13.
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