June 22, 2020

 

Japfa shifts business strategy to overcome COVID-19 impact

 

Indonesian public-listed poultry and livestock feed company PT JapfaComfeed said it aims to improve production and internal operations as it seeks to overcome COVID-19's impact on the economy, The Jakarta Post reported.

 

In its 2019 annual report, Japfa said it will focus on its core business as it estimates the consumption of animal protein in Indonesia as a sign to boost its business performance.

 

Japfa's general shareholders had approved a rights issue and plans for share buyback, giving the company flexibility to move in a favourable internal and equity market.

 

The company reported more than 17% year-on-year total liabilities at IDR 16.09 trillion (~US$1.13 billion; IDR 10,000 = US$0.071) between January to March this year, with net assets at IDR 27.64 trillion (~US$1.96 billion) at a 10% annual rise.

 

As part of Japfa's business strategy, the company will educate its farmer partners about improving production quality and competitiveness. It also expanded operational networks so it can be closer to partners.

 

Bambang Budi Hendarto, Japfa vice president director said it will increase productivity to meet both local and worldwide market demand.

 

The company is Indonesia's second largest livestock feed and day-old-chicks producer, with an IDR 9.08 trillion (~US$645 million) net revenue in the first quarter of 2020, up 6% year-on-year. It reported an IDR 343.88 billion (~US$24.4 million) annual net profit, up 10%.

 

Japfa shareholders will receive IDR 234.53 billion (~US$16.6 million) in dividends, equal to 13.29% of the company's IDR 1.77 trillion (~US$125 million) net profit last year.

 

Japfa net sales was up IDR 36.74 trillion (~US$2.6 billion) in 2019, an 8% increase from IDR 34.01 trillion (~US$2.4 billion) in 2018 thanks to surging sales volumes even though live bird sell prices dropped.

 

Bambang said the largest contribution to the company came from its livestock feed business division. 

 

Company shares on the Indonesia Stock Exchange (code JPFA) was up 41.11% in the last month. As of June 19, its stocks are at IDR 1,280 (~US$0.091), up 0.79%.

 

-      The Jakarta Post