Profit Of So Nice Sausage Producers Dropped 75.3 Percent In The Third Quarter Of 2020

JAKARTA - PT Japfa Comfeed Tbk posted a net profit of IDR257.18 billion in the third quarter of 2020. This value is down 75.3 percent compared to net profit in the third quarter of 2019 which amounted to IDR1.043 trillion.

Quoted from the information disclosure on the Indonesia Stock Exchange (IDX) website, Friday, October 30, this issuer coded as JPFA shares also recorded a decrease in revenue of 8.28 percent year on year (yoy) to Rp24.92 trillion. In the third quarter of 2019, Japfa Comfeed managed to book revenue of IDR 27.17 trillion.

If detailed, revenue from the commercial livestock and livestock product processing segment is IDR 11.12 trillion, the animal feed segment IDR 7.99 trillion, aquaculture segment IDR 2.45 trillion, chicken breeding IDR 1.7 trillion, cattle farming IDR 983 billion, and other trade IDR1.02 trillion.

Meanwhile, Japfa Comfeed's cost of revenue only fell 7.2 percent from Rp.22.45 trillion in the third quarter of 2019 to only Rp.20.82 trillion. On the other hand, the company's total liabilities as of September 30, 2020 increased to IDR 15.43 trillion, consisting of IDR 7.02 trillion short-term liabilities and IDR 8.4 trillion long-term liabilities.

At the end of 2019, the company's total liabilities amounted to IDR 13.73 trillion. Meanwhile, total assets as of 30 September 2020 amounted to IDR 26.79 trillion, up from the position as of 31 December 2019 of IDR 25.18 trillion. Meanwhile, cash and cash equivalents increased significantly by 133.4 percent to IDR 2.18 trillion from the position at the end of 2019 of IDR 937 billion.

For information, to expand the downstream business, Japfa Comfeed Indonesia and its subsidiary PT Ciomas Adisatwa acquired PT So Good Food and PT So Good Food Manufacturing. The total transaction value of this acquisition reached IDR1.21 trillion.

The management of Japfa Comfeed explained that this transaction was an affiliated transaction because the seller was two companies that were also subsidiaries of Japfa Ltd. JPFA and Ciomas have signed a sale and purchase agreement for 100 percent of the issued and paid-up shares in So Good Food or in the amount of 500,000 shares and 0.004 percent of the issued and paid-up shares of So Good Food Manufacturing or equivalent to 1,000 series A shares.

Based on Japfa's report to the Indonesia Stock Exchange, 28 August 2020, payments will be made in two forms. First paid in cash on November 30, 2020, consisting of IDR 363.18 billion from Japfa to Jupiter plus IDR 18.2 million, and IDR 1.03 billion from Ciomas Adisatwa to Anona.

Second, the payment was made in the form of issuance of promissory notes to Jupiter worth IDR849.89 billion. The instrument will be paid for by the company based on Jupiter's request. The Promissory Note will be subject to interest starting April 16, 2021 at JIBOR (1 month) +2.25 percent per year, which is calculated per day based on an annual calculation of 365 days, until the Promissory Note is paid by the company.

So Good Food is engaged in food processing. Famous brands from the company are So Good sausage, So Nice, or Real Good milk.