Japfa reports higher revenue but lower earnings for H1

AGRI-FOOD company Japfa on Thursday (Jul 28) reported a 10.4 per cent increase in 1H 2022 revenue to US$2.5 billion from US$2.3 billion a year ago.

However, net profit attributable to shareholders for the period fell 62.9 per cent to US$44 million from US$118.5 million in 1H 2021. Earnings were dragged by high feed raw material costs and the impact of Covid-19 at the beginning of 2022, with lower broiler prices in February 2022.

Operating profit for H1 fell 36.9 per cent to US$171 million from US$270.9 million in 1H 2021. Operating profit margin in H1 also dropped 5.2 percentage points to 6.8 per cent from 12 per cent in 1H 2021.

While uncertainties remain at a global level, we continue to focus on being one of the most efficient and lowest-cost producers in our domestic markets. This enables us to ride through major down-cycles, as we have successfully demonstrated in the past, and provide safe and affordable protein foods to consumers in Asia,” said Tan Yong Nang, chief executive officer of Japfa.

Japfa shares closed 4.3 per cent or S$0.025 higher at S$0.60 on Thursday.