Agrifood company Japfa UD2 has reported a loss of US$22.7 million ($31 million) in 9MFY2023, following a weak first half of the year when the company’s performance was affected by weaker selling prices on the back of inflation-suppressed demand and stifled increases in selling prices.
Core patmi without forex stood at negative US$17 million, compared to 9MFY2022’s US$44.1 million. Ebitda for the period stood at US$195.8 million, 24% lower y-o-y.
Despite this, the company notes that there was a clear trend reversal in profitability — operating profit in 3QFY2023 ended September alone was a record US$101.8 million, arising from stronger margins in poultry feed as well as higher selling prices of both poultry in Indonesia and swine in Vietnam.
For 9MFY2023, Japfa’s operating profit stood at US$105.6 million while revenue declined 0.6% y-o-y to US$3.29 billion.
“As we navigate the ups and downs of the market, we remain focused on achieving our long-term goals and capture the growth potential for protein consumption in emerging Asia for the benefit of all our stakeholders,” says Japfa CEO Tan Yong Nang.
Shares in Japfa closed 0.2 cents higher or 1.08% up on Oct 31 at 18.6 cents.
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