July 29, 2015
Japfa eyes Asia expansion despite fall in Q2 earnings
Agri-food conglomerate Japfa's Q2 (ended June 30) net profit dropped 86% year-on-year to US$2.96 million due to lower revenue as well as the absence of a one-off gain from an asset disposal in the corresponding quarter a year ago, the Business Times reports.
Revenue declined 8% to US$704.25 million mainly due to the continued fall in consumer demand, impacting the company's Indonesian operations in the animal protein and consumer food segments.
Chief executive Tan Yong Nang remains optimistic: "As we navigate the headwinds in Indonesia, we will continue to leverage our track record in replicating our industrialised and scalable business, to build our three key business pillars - dairy in China, poultry in Indonesia, and poultry and swine in Indochina."
The company also reported its earnings per share of 0.17 US cent, down from 1.40 US cents a year ago.
For the six-month period, net profit dropped 71% to US$9.96 million, while revenue slid 5% to US$1.38 billion.