Agri-food company Japfa UD2 has posted a net loss of US$53.6 million ($71.2 million) for 1HFY2023 ended June, sinking into the red from a net profit of US$25.5 million this time last year.
Revenue for the period was down 4.3% y-o-y to US$2.12 billion, the company reported on July 31.
Japfa recorded an overall margin compression resulting from the combination of external factors affecting both production costs and selling prices of our products, says the company. “High raw material costs increased input costs across the value chain of our breeding, fattening and downstream operations. In addition, inflationary pressures affected consumer purchasing power and therefore our ability to manage increases in the average selling prices (ASPs) of our products.”
The group’s ebitda stood at US$64.0 million in 1HFY2023, more than halving from US$190.9 million in the year prior.
Tan Yong Nang, chief executive officer of Japfa, says initiatives launched in 1Q2023 to navigate the current environment are “well on-track”.
In May, Japfa delivered 23,000 live chickens from Indonesia to Singapore. This was the first time live birds were shipped via sea to Singapore from Indonesia.
See also: Japfa ships 23,000 live chickens from Bintan to Singapore
“This shipment was a notable achievement to test a new important option to supply fresh chicken to Singapore, with the birds transported live via sea and slaughtered in the destination country,” says the group. “As one of the largest animal protein producers in the region, Japfa is able to meet Singapore’s demand and standards for staple protein foods. This first shipment opens up new opportunities to provide not only fresh chicken but also other staple protein foods to Singapore, and Japfa is committed to continue to invest in the Bintan project to support Singapore’s food security strategy.”
Shares in Japfa closed 0.5 cents lower, or 2.13% down, at 23 cents on July 31.
