PT Japfa Comfeed Indonesia (JPFA) Q2 2024 earnings summary

Executive summary

• Net sales for 1H2024 reached IDR 27.65 trillion, up 14.5% year-over-year, with all business segments contributing to growth.

• Net profit surged to IDR 1.59 trillion from IDR 112 billion a year earlier, driven by improved feed margins and higher poultry prices.

• Operating profit rose to IDR 2.65 trillion, reflecting improved margins and cost control.

• The company leverages a vertically integrated model, economies of scale, and a nationwide footprint to maintain market leadership.

• Compliance with loan covenants and strengthened capital structure were maintained.

Financial highlights

• Revenue for 1H2024 rose 14.5% to IDR 27.6 trillion; operating profit surged 287.7% to IDR 2.65 trillion.

• EBITDA increased 161.5% to IDR 3.22 trillion; net profit jumped 1,314.9% to IDR 1.59 trillion.

• Gross profit reached IDR 5.36 trillion, up from IDR 3.36 trillion year-over-year.

• Total assets as of June 30, 2024 stood at IDR 36.11 trillion.

• CAPEX for 1H2024 was IDR 713–715 billion, reflecting prudent capital management.

Outlook and guidance

• Focus remains on strengthening downstream business, poultry processing, and retail sales growth.

• Management is confident in long-term protein consumption growth in Indonesia and emerging Asia.

• Non-essential CAPEX will be held back due to global uncertainties and inflationary pressures.

• Management continues to optimize funding sources and maintain healthy capital ratios.

• Risks related to interest rates, FX, credit, liquidity, and commodity prices are actively managed.