Japfa, which farms chickens and pigs, has reported revenue of US$2.5 billion for 1HFY2022, up 10.4% y-o-y on higher selling prices.
However, the company incurred higher costs for its farming operations which led to a 62.9% y-o-y drop in its earnings to US$44 million.
“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,” says CEO Tan Yong Nang (picture)
“This enables us to ride through major downcycles, as we have successfully demonstrated in the past, and provide safe and affordable protein foods to consumers in Asia,” he adds.
The company has also announced that its Indonesia-listed subsidiary PT Japfa Tbk secured a sustainability-linked loan of Rp1.42 trillion (US$95 million) from PT Bank Negara Indonesia.
Back in March 29, the company announced plans to list its dairy unit AustAsia in Hong Kong. The application is still pending.
“In addition, the timing of the proposed listing will be subject to prevailing market conditions,” says Japfa on July 28.
As part of the proposed listing, Japfa plans to distribute in specie its entire shareholding in AustAsia to its shareholders by way of capital reduction.
The proposed distribution in specie has received the approval-in-principle from SGX.
Separately, the Straits Times has reported that a Japfa unit will be the second Indonesian company to ship live chickens to Singapore.
This follows Malaysia's ban on exports of live poultry that took effect on June 1. The move sent Singapore looking for alternative sources.
The first Indonesian company to do so is Charoen Pokphand Indonesia, a unit of the Thai conglomerate.
Japfa shares closed at 60 cents on July 28, up 4.35%.