Japfa Q3 net profit down 94%

JAPFA Ltd, a Singapore-listed Indonesian agri-food firm, reported a 94 per cent drop in net profit to US$3 million for its third quarter ended Sept 30, 2017, from US$48 million a year ago.

Revenue rose 3 per cent to US$814 million from US$788 million a year ago.

Japfa sells milk, poultry and beef in Indonesia, and runs poultry and swine farms in Vietnam.

Despite a pick-up in swine prices, Vietnam operations continued to make losses as continued China import restrictions bit.

The dairy business made losses due to a fair value loss from lower market price of raw milk, heifers and calves.

Meanwhile, the core Indonesia business suffered a sharp drop in net profit as poultry and beef margins shrank.

Japfa last traded at S$0.62, up S$0.035 or 6 per cent, before the results were released.