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Japfa net profit grows five times to US$35.5m in Q1
JAPFA, which produces and supplies staple foods, has recorded a net profit of US$35.5 million for the first quarter, five times that for the preceding year.
This came as revenue grew 4.2 per cent year on year to US$949.9 million, on the back of growth in the five business segments Japfa operates across Indonesia, Vietnam, Myanmar, India and China.
The group said gains were largely owing to higher feed margins in Indonesia, as well as higher swine-fattening prices in Vietnam and higher raw milk prices in China. The swine and raw milk markets have been hit by supply shortages.
However, Japfa has also postponed capital expenditure in South-east Asia since the Covid-19 outbreak.
Some expected sources of demand may not materialise, as well. For instance, Ramadan is typically expected to drive demand for poultry, but the virus outbreak has reduced Indonesian people's purchasing power and, hence, their demand for this meat.
Japfa said it will continue to keep a close watch on the Covid-19 situation.