Japfa sees Q2 net profit of US$29.6m, reversing previous loss

MAINBOARD-LISTED Indonesia agri-food firm Japfa Ltd saw net profit of US$29.6 million for the second quarter ended June 30, a turnaround from its net loss of US$3.4 million in the year-ago period, it reported on Monday evening after the market closed.

Revenue rose 14 per cent to US$901 million from US$790.2 million, driven mainly by higher sales volume and improved margins in its Indonesia animal protein business and a recovery in its Vietnam market.

Earnings per share for the second quarter were 1.63 US cents, compared to a loss per share of 0.19 US cent for Q2 2017.

The Indonesian animal protein segment, PT Japfa Tbk, remained the largest driver of revenue and operating profit, with revenue rising 11.7 per cent to US$628.7 million and operating profit up 69.4 per cent to US$89.5 million in the second quarter. The improved bottom-line was in spite of widened forex adjustment losses of US$15.8 million, compared to the US$0.2 million forex loss in Q2 2017.

The second quarter also saw Japfa's animal protein operations in Vietnam, Myanmar, India and China back in the black, with an operating profit of US$10.1 million, compared to an operating loss of US$12.8 million for the year-ago period. This was due mainly to higher sales volume for poultry feed and higher average selling prices for its broiler and swine-fattening businesses in Vietnam.

Japfa shares closed down two Singapore cents or 2.7 per cent at 73 Singapore cents on Monday, before the announcement.