AGRI-FOOD company Japfa reported a net loss of US$22.7 million for the first nine months ended Sep 30, 2023, reversing from a net profit of US$46.3 million from the same period a year ago.

Revenue was down by a marginal 1 per cent year on year to US$3.3 billion for 9M FY2023. This brought loss per share for the period to 1.11 US cents, compared with earnings per share of 2.27 US cents the previous year.

In a bourse filing on Tuesday (Oct 31), the group attributed the poorer performance to compressed profit margins in the first half of the year due to weak selling prices arising from challenging global conditions. 

Expenses from foreign exchange adjustments fell 61 per cent year on year to US$3.8 million in 9M FY2023. Finance costs, on the other hand, grew 37 per cent year on year to US$83.9 million. 

But its animal protein others segment in Vietnam recovered to US$12.1 million in the third quarter, compared with the operating losses in the previous three quarters.

Profit for its Indonesian unit was also up in Q3 as poultry prices started improving following adjustments in supply, it said. “Feed remains a pillar of profitability and Japfa continues to pass on raw material prices increases in feed selling prices.” 

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The improvements were primarily due to higher selling prices and a tangible reduction in production costs, said the group.

Together, that brought Japfa’s operating profit in Q3 to US$101.8 million. 

Tan Yong Nang, chief executive officer of Japfa, added: “As we navigate the ups and downs of the market, we remain focused on achieving our long-term goals and capture the growth potential for protein consumption in emerging Asia for the benefit of all our stakeholders.” 

Shares of Japfa closed on Tuesday at S$0.186, up 1.1 per cent or S$0.002, prior to the announcement.