Amid a high-cost environment, Japfa has reported PATMI of US$46.3 million ($65.54 million) for 9MFY2022, down 59.3% from the same period last year.
Revenue, however, grew 10.5% to US$3.73 billion. This is driven by sales volume growth across all segments.
“Profit margins were impacted by higher raw material prices across all businesses and the weak performance of swine in animal protein other (APO)-Vietnam,” the company says in a results filing.
EBITDA declined by 17.4% y-o-y to US$347.6 million, while gross profit declined by 6% to US$583 million.
Segment-wise, the company’s Indonesia-listed subsidiary PT Japfa Tbk delivered steady results despite the persistent high cost environment, while APO’s profits were impacted by higher raw material costs and African Swine Fever (ASF) in Swine-Vietnam. However, the segment’s EBITDA remained positive.
The dairy segment posted a solid operational performance, which helped to cushion margins’ contraction.
“In the first nine months of 2022, we grew revenue across all segments, demonstrating our ability to navigate a challenging operating environment that continues to be affected by inflationary pressures on costs and other external factors, such as ASF in Vietnam and geopolitical tensions,” says Japfa CEO Tan Yong Nang.
“While we expect the global economic conditions to remain volatile, we remain focused on the execution of our strategy to provide affordable staple proteins to consumers in emerging Asia,” he adds.
Shares in Japfa closed 0.5 cents higher or 1% up on Oct 31 at 51 cents.