HONG KONG (Yosefardi) – Agriculture giant C.P. Pokphand Co Ltd booked net profit of US$62 million in the first half ended June 30, 2013, slashed by 40% from the corresponding period of 2012 due to squeezed margins.
According to the company’s interim results submitted to the stock exchange of Hong Kong Thursday (Aug 8), for the six months ended 30 June 2013, the Group’s revenue was US$2,474 million, inched up from US$2,328 million in the first half of 2012, of which the agri-food business in China, the agrifood business in Vietnam and the chlortetracycline business contributed 64.1%, 33.6% and 2.3% of revenue respectively.
Overall gross profit margin was 11.6%, down significantly from 14.9% in the first half of 2012.
“Economic growth in China and Vietnam continued to slow down. With reduced growth in fixed-asset investments and domestic consumption, China’s economic growth remains in a decelerated mode. In Vietnam, the economy remains fragile with the government trying to rein in inflation and non-performing loans,” C.P Pokphand argued.
The company expects the agri-food sectors in Vietnam and China, and hence the group’s business results, to remain weak in the second half of 2013.