Japfa’s segments to face uncertainties in higher costs and ASPs

The agri-food firm’s net PATMI declined 73.9%, on a yearly basis.

All sectors of SGX-listed Japfa will be hit by uncertainties of increasing costs and fluctuating average selling prices, said UOB Kay Hian.

A UOB Kay Hian brokerage report found that the firm’s core PATMI declined in 2022. It was impacted by “higher raw material costs, and the weak performance of swine in Animal Protein Other (APO) Vietnam, which recorded an operating loss.” 

Higher prices of swine in Vietnam continued in 2022 due to supply shortage caused by ASF. Broiler and day-old-chick prices are also volatile in Indonesia.

UOB Kay Hian also noted that there is lower-than-expected consumer demand driven by export oriented firms in Vietnam hit by slowdowns in Europe and US markets.