JAPFA reported on Wednesday (Jul 31) a net profit of US$51.7 million for the first half of the year, reversing into the black from a loss of US$53.6 million in the corresponding period the year before.
Revenue for the period was up 6.3 per cent to US$2.3 billion, from US$2.1 billion in H1 FY2023.
The company said that lower raw material costs led to higher feed margins, and poultry and swine selling prices rose amid cost of living pressures. Additionally, the group’s poultry and swine operations in Vietnam posted lower production costs.
Chief executive officer of Japfa, Tan Yong Nang, said: “In Vietnam, our well-established livestock genetic pyramid gives us a strong competitive advantage by providing a steady supply of livestock despite the challenges posed by the resurgence of African swine fever.”
Cost reduction initiatives in Vietnam were effective and continued to produce results for the company, he added.
This contributed to the company’s improved financial performance, which includes a 286 per cent year-on-year increase in earnings before interest, taxes, depreciation and amortisation (Ebitda).
The company’s Ebitda for the half-year was US$247.3 million, rising from US$64 million in the same period a year ago.
The agri-food company did not recommend an interim dividend for the period and said it plans to conserve cash to use for its operations.
Shares of Japfa closed 2.9 per cent or US$0.01 lower at US$0.33 on Wednesday.
