Japfa, a leading regional food producer, has reported a 22.2% y-o-y jump in revenue to US$3.4 billion for the nine months ended Sept 30.
However, due to higher raw material cost for feed and lower selling prices due to the pandemic, the company’s earnings for the period was down 12.4% y-o-y to US$113.9 million.
Besides its base in Indonesia, Japfa rears chickens, pigs and cows for milk in markets such as China, Vietnam and Myanmar.
“The diversification of our revenue and profit streams, coupled with the relentless focus of our local teams, continues to be a strength for our Group,” says CEO Tan Yong Nang.
“Meanwhile, we have continued our plan to grow our dairy segment, AustAsia, into the largest independent raw milk producer in China, by forging new strategic partnerships with growing food and beverage Chinese companies as shareholders of AustAsia,” says Tan, referring to a string of deals involving its milk producing subsidiary in China.
Japfa warns that with the “unpredictability” surrounding the pandemic, demand could dampen “in any market at any time”.
“We believe that we are well placed to manage the situation, on the strength of our large scale, industrialised business model and our diversification strategy across proteins and markets,” the company adds.
Japfa shares closed Oct 28 at 70 cents, down 2.11% for the day and 24.46% year to date.
Photo: Japfa
