Japfa's profits plummet 94% to US$3m in Q3

Profits are cut across its poultry and beef businesses.

Japfa Ltd struggles from profits that plummeted 94% YoY from $65.70m (US$48.02m) to $4.11m (US$3m) in Q3.

According to its financial statement, revenue rose 3% YoY from $1.08b (US$787.96m) to $1.11b (US$814.27m). The increase of revenue was generally due to higher sales in its Animal Protein Indonesia, Dairy and Consumer Food segments.

However, operating profit crashed by 47% YoY from $144.22m (US$105.40m) to $76.65m (US$56.02m), due to margin shrinkage across its poultry and beef businesses, accompanied by a one-off $17.79m (US$13m) gain last year from the sale of beef cattle in Australia.

Japfa also reported a weaker feed business. Its swine fattening business in Vietnam continued to incur operating losses as swine's market prices remained below costs.

By Val Vannet, CC BY-SA 2.0