October 31, 2018

Japfa Q3 net profit spikes
 

Japfa posted a net profit of US$14.3 million for the third quarter ended September 30, up from US$3 million a year ago, supported by stronger performance across most business segments, the Business Times reported.

Revenue rose 7.8% to US$877.4 million, despite weakening currencies in major subsidiaries.

Earnings per share were 0.77 US cent, up from 0.17 cent a year ago.

The Animal Protein Indonesia segment, PT Japfa Tbk, continued to be the biggest revenue contributor at 65%.

APO, which refers to the group's animal protein operations in Vietnam, Myanmar, India and China, continued its recovery in 3Q2018. It recorded a revenue of US$153.8 million, a 29.4% year-on-year growth and a turnaround in operating profit to US$11.7 million compared to a loss of US$6.4 million a year ago.

The improved performance was mainly led by record operating profit from its Vietnam operations with continued strong recovery of swine prices and higher average selling prices for day-old chick. It also reflects a rebalancing of Vietnam's local swine market demand and supply levels following China's swine import restrictions imposed in November 2016.

Japfa said that it is confident that its core competencies in large-scale farming and food production, diversified strategy across multiple proteins and geographies, together with its track record in replicating its industrialised and scalable business across the region, will sustain its growth in the mid- to long-term.