Japfa’s Q1 earnings skyrocket 234% to $31.37m

Thanks to contributions from animal protein, dairy segments.

Japfa’s profit after tax and minority interests (PATMI) for 1Q16 profit skyrocketed by a whopping 234% YoY to US$23.4m (roughly $31.37m). On a QoQ basis, however, this reflects a 50% plunge.

According to a report by DBS, excluding gains from changes in fair value of biological assets (net of tax, but including recurring translation FX losses) the group’s core PATMI came in at US$24.4m ($32.71m). While this is a hefty YoY jump from 1Q15’s US$1.6m ($2.14m), it also reflects 28% QoQ fall.

The strong performance in Q1 was driven by higher earnings before interest, tax, dividends, and amortisation (EBITDA) contribution of US$11.7m ($15.68m) from Japfa’s animal protein segment outside Indonesia. The group’s dairy segment also doled out US$18.1m ($24.26m).

These were offset partially, though, by a spike in G&A on bonus payments, which last year were booked in 2Q15.

Japfa’s borrowings in Q1 totaled US$515m ($690.33m), which translated to net debt to total equity ratio of 71%. DBS notes that the higher net gearing ratio exhibits increased debt outside Indonesia on continued capacity expansion.