JAPFA swung into the black with a net profit of US$87.5 million for its first nine months ended Sep 30, 2024, compared with a net loss of US$22.7 million in the same period a year earlier.
This was mainly due to improved contributions from its Indonesian unit and its “animal protein other” segment in Vietnam, the agri-food company said in a regulatory filing on Monday (Oct 28).
Core net profit without forex – which excludes changes in the fair value of biological assets and derivatives, extraordinary items as well as foreign exchange gains and losses before tax – also rose to US$90.5 million, from a loss of US$17 million in the same period last year.
Earnings per share stood at 4.30 US cents for the nine months, up from a loss of 1.11 US cents in the previous year.
Revenue for the period rose 3.7 per cent to US$3.4 billion, from US$3.3 billion a year earlier, amid substantial year-on-year improvements driven by higher sales volumes and prices, as well as lower costs.
Profit was mainly driven by steady feed margins across its major markets, and higher margins in its “day-old chicks” and broiler segments in Indonesia due to lower feed costs, the company said.
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It also saw higher swine volumes and prices, as well as lower production costs in poultry and swine operations in Vietnam, it added.
A one-off interim dividend of one Singapore cent per share was declared for the period, on the back of a solid performance in its major markets, said Tan Yong Nang, chief executive officer of Japfa.
Tan noted: “After the challenging last two years, we are pleased that our profitability has improved since the beginning of 2024.”
He added: “Our strong nine-month performance sets a solid foundation as we approach the end of the year.”
Shares of Japfa rose 1.4 per cent or S$0.005 to S$0.36 on Monday, before the results were released.
