Japfa Comfeed, Livestock Company Owned By Conglomerate Handojo Santosa Raise Sales Of IDR 36.94 Trillion And Profit Of IDR 2.02 Trillion

Photo: Doc. Japfa Comfeed

JAKARTA - The livestock company owned by the Handojo Santosa conglomerate, PT Japfa Comfeed Tbk recorded a brilliant performance in 2021. The issuer with the stock code of JPFA posted a net profit of IDR 2.02 trillion in 2021, skyrocketing 120.6 percent from the previous year's net profit of IDR 916.71 billion.

In JPFA's financial report, quoted on Wednesday 6 April, the majority of JPFA's brilliant performance was supported by commercial sales. Japfa's net sales jumped 21.40 percent, from the previous IDR 36.94 trillion to IDR 44.87 trillion in 2021.

The commercial sales segment was the largest contributor with revenues of IDR 17.60 trillion, followed by the animal feed segment with revenues of IDR 13.92 trillion.

Then, the livestock product processing segment and poultry processing consumer products contributed IDR 6.29 trillion from the previous IDR 5.22 trillion. Furthermore, the aquaculture segment amounted to IDR 3.94 trillion, poultry breeding amounted to IDR 2.66 trillion, and the acquisition of the trade and other segments amounted to IDR 2.02 trillion.

Meanwhile, in terms of market segments, Japfa's sales to the domestic market in 2021 will reach IDR 44.25 trillion, up 21.48 percent from the previous year's achievement of IDR 36.42 trillion. Then, export sales rose 16.11% from the previous IDR 536.80 billion to IDR 623.30 billion.

The company also recorded an increase in cost of goods sold by 24.8 percent to IDR 36.86 trillion from the previous IDR 29.53 trillion. Meanwhile, a significant increase was seen in the cost of raw materials used to IDR 32.09 trillion, up 29.93 percent from IDR 24.69 trillion.

In the public expose material released by the company in the disclosure of information on the Indonesia Stock Exchange (IDX), throughout 2021, the company faces challenges in the form of flooding the DOC in the market, including the decline in purchasing power and the implementation of the Community Activity Restrictions (PPKM) by the government.

Although the price of live birds in the first and second quarters was quite good, along with the increase in COVID-19 cases, the demand for chicken fell drastically in the third quarter. This causes the price of live bird to be depressed again.

"The situation improved in the fourth quarter, indicated by indications of an increase in live bird prices," JPFA management wrote in information disclosure.

In addition, the company is also facing challenges with the availability and rising prices of almost all raw materials, especially soybean meal and corn. Meanwhile, the very significant increase in the price of raw materials cannot be fully attributed to the increase in feed prices, due to the condition of livestock which is experiencing losses and the people's purchasing power is still weak.

For this year, the company will continue to strengthen its downstream business by developing the business of processing livestock products and consumer products, as well as encouraging the growth of retail sales to consumers through retail outlets owned by the Company both offline and online.