SINGAPORE (Aug 8): Lower average selling prices and higher costs drove earnings for agri-food company Japfa down to US$5 million ($6.8 million) for the 2Q19 ended June, a steep 83% drop from a year ago.
Segmentally, one of the key contributors of Japfa’s weak performance was Japfa Cornfeed Tbk (JPFA), which saw earnings decline 23% y-o-y to US$18.6 million. This was on the back of higher corn prices, which pressured margins, and softer broiler prices, which led to EBIT declining 27.2% y-o-y to US$65.2 million.
Similarly, the Animal Protein Other segment reported an operating loss of US$0.1 million for 2Q19, compared to an operating profit of US$10.1 million a year ago, as a result of a lower swine fattening average selling price in Vietnam. This was largely due to the impact of the African Swine Fever outbreak in Vietnam.