SINGAPORE (Dec 10): Japfa, an agri-food company that is focused on feeding Asia’s emerging market population, has seen its share price rise 43.14% year to date, compared with a decline of 8.2% in the Straits Times Index. Investor interest and demand for its products are driven by the need for more protein from the rising middle class in the region. As such, Japfa’s shares are seen as a proxy to rising food demand in Asia. 

The company’s sales, margins and profit showed marked improvement in 3QFY2018. Earnings before interest tax, depreciation and amortisation of US$356 million ($485.8 million) for the nine months to Sept 30 were 23% higher than full-year Ebitda for FY2017. Ebitda and profit have grown 38.6% and 114.7%, respectively, for 9MFY2018, supported by a higher average selling price for poultry, accelerating sales volume of dairy products and a recovery in swine prices.    

Japfa is a vertically integrated agri-food company, from ownership of a livestock breeding business to the packaging of food and production of dairy products for sale at supermarkets. The Indonesian business is operated under its 52.4%-owned subsidiary Japfa Comfeed Indonesia and the dairy business through AustAsia. The packaged food and dairy products are marketed under the company’s in-house brand Greenfields.

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