AGRI-FOOD group, Japfa Ltd, said on Friday that its net profit was US$10.77 million for the third quarter ended Sept 30, 2014, compared to US$11.99 million a year ago.
But if the fair value changes of biological assets were to be excluded, the adjusted net profit is US$12 million in Q3 compared to US$12.4 million a year ago.
Revenue was at US$784.66 million, up 15 per cent from US$679.84 million a year ago. It said this was mainly derived from its three main operating segments involving animal protein, dairy and consumer food.
In the third quarter, its comfeed segment was hit by a weaker Indonesian rupiah which depreciated 20 per cent against the US dollar compared to a year ago.This caused a weakening in the purchasing power of low-income consumers across Indonesia resulting in the downward pressure on the selling prices of day-old chicks and broiler chickens in Indonesia. The group's gross profit fell to US$123.5 million.
The group was also hit by higher finance, administrative as well as marketing and distribution costs.
The newly listed Japfa said it operates in emerging market economies which have compelling macro-economic fundamentals and significant potential for growth in protein food consumption over the long term.
"In the short term however, the effect of the rupiah depreciation of approximately 20 per cent against the US Dollar in 2013 is still being felt in 2014,'' it said. "In addition, factors such as the anticipated removal of fuel subsidy which may impact consumer purchasing power in Indonesia, may present risks and introduce greater volatility to consumption patterns."