AGRI-FOOD company Japfa : UD2 0% on Thursday (Feb 29) swung back into the black for the six months ended Dec 31, 2023, posting a net profit of US$22.8 million, compared to a net loss of US$35.9 million in the corresponding year-ago period.

This was attributed to stronger feed margins in most of Japfa’s markets and higher selling prices of colour birds in Vietnam.

In addition, the group made “substantial progress” in reducing its production costs, in line with its 2023 plan to streamline operations, it noted. This, in turn, benefited its swine operations in Vietnam.

The H2 net profit translates to an earnings per share of S$0.0112 for the period, compared to a loss per share of S$0.0176.

This comes after revenue for the second half increased 7 per cent on-year to US$2.3 billion, from US$2.2 billion.

Despite the improvement in the second half, Japfa recorded a full-year loss of US$30.8 million, compared to a net profit of US$8.2 million in FY2022.

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The group did not declare a dividend for FY2023, due to its full-year net loss. This was compared to a dividend of S$0.01 per share in FY2022.

The loss was attributed to the group’s loss of US$53.6 million in the first half of the year, as well as cost of living pressures, with disposable income squeezed by rising inflation.

Its full-year revenue was US$4.43 billion, ticking up 1 per cent from US$4.36 billion.

As for its segments, Japfa’s Indonesia unit recorded a lower profit of US$54.5 million for the 12 months, down 41.3 per cent year on year and attributed to weaker poultry prices.

This was despite its revenue increasing 2.4 per cent to US$3.4 billion year on year on higher feed volume and selling prices.

Its animal protein other segment posted full-year revenue of US$1 billion in FY2023, inching up 0.4 per cent year on year.

The segment remained in the red for FY2023, at US$56.9 million, widening from a net loss of US$52 million.

Shares of Japfa slid 4.6 per cent or S$0.01 to S$0.21 on Thursday, before the results were released.