Japfa’s attributable profit plunges 62.9% to US$44m

This is due to the higher raw materials costs and other external factors.

SGX-listed agri-food company Japfa posted a 62.9% decline in net profit attributable to owners to $44m in the first half due to factors including an increase in prices and the pandemic.

In a statement, Japfa CEO Tan Yong Nang said the first half of the year was “challenging” for the company, due to higher raw materials costs and other factors such as the African Swine Fever, COVID-19 and geopolitical tensions.

“Despite growth in revenue, higher input costs affected profitability throughout our operations and increased production costs in breeding, fattening and downstream,” Tan said.

The company’s revenue rose by 10.4% to US$ around $2.5b.

Japfa said the performance of PT Japfa Tbk and Dairy, despite being lower than last year, has offset the weaker performance of APO-Vietnam.

Nang said that the company’s earnings before interest, taxes, debt and amortisation which was down by 27.7% to $254.2m, was a “respectable result” when compared to full-year 2021.

READ MORE: Japfa net profit declined by 34.6% in 2021

“While uncertainties remain at a global level, we continue to focus on being one of the most efficient and lowest cost producers in our domestic markets. This enables us to ride through major downcycles, as we have successfully demonstrated in the past, and provide safe and affordable protein foods to consumers in Asia,” Tan said. 

The company will continue to focus on its sustainability effort, adding that PT Japfa Tbk secured the Group’s first Sustainability-Linked Loan, he said.

PT Japfa Tbk signed a US$95m sustainability-linked loan with PT Bank Negara Indonesia Tbk. The loan is a five-year bilateral credit for general corporate purposes.