Japfa net profit down 12.4%
Strict lockdowns and restrictions affected the demand for its protein products.
Agri-food company Japfa recorded a net profit of $113.9m for the first 9 months of 2021, 12.4% lower than the $130m recorded for the same period last year.
In Q3 2021, COVID-19 flared up in two major markets, causing strict lockdowns, social and business restrictions which hit demand and lowered prices for staple proteins. Indonesia broiler prices dropped and Vietnam broiler prices fell significantly below cost, while swine prices were also affected.
However, Dairy China continued to deliver on the back of high sales volumes and raw milk price, which remains strong due to the supply shortage in the market.
CEO Tan Yong Nang stated, "The diversification of our revenue and profit streams, coupled with the relentless focus of our local teams, continues to be a strength for our Group. Meanwhile, we have continued our plan to grow our dairy segment, AustAsia, into the largest independent raw milk producer in China, by forging new strategic partnerships with growing food and beverage Chinese companies as shareholders of AustAsia."
The group said it will continue to keep a close watch on the evolving conditions.