Japfa Q1 net profit rises 37% to US$48.5m

JAPFA on Thursday posted a 37 per cent rise in net profit to US$48.5 million for the first quarter of 2021, up from US$35.5 million in the previous year.

Revenue grew 16 per cent to US$1.1 billion from US$950 million, and earnings per share was 2.4 US cents, compared to 1.8 US cents in Q1 2020.

The industrialised agri-food company noted that all three of its segments contributed to the revenue and profit growth.

PT Japfa Tbk, its Indonesian unit, benefited from stabilised poultry prices from the Indonesian government's initiatives to balance demand and supply. Operating profit more than doubled to US$101.4 million from US$41 million in the previous year, despite the continued impact of Covid-19 on consumer demand in the country.

Meanwhile, its Animal Protein Other (APO) segment saw operating profit improve 11.8 per cent to US$20.7 million for the quarter, on the back of strong results from its swine operations in Vietnam. The unit increased swine-fattening volumes more than 30 per cent to quickly replenish swine stock and make the most of a supply shortage caused by African swine fever, which is driving up swine-fattening prices.

The performance was partially offset by an operating loss of US$3.3 million at APO-Myanmar, where day-old-chick and broiler prices remain low due to the impact of Covid-19 and the recent disruptions in the country.

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Revenue and profitability improved 6.9 and 12.4 per cent respectively at Japfa's dairy unit on the back of higher sales volumes and the prices of both raw milk and beef in China.

Japfa shares closed flat at S$0.905 on Thursday.