JAKARTA (TheInsiderStories) - Poultry producer, PT Japfa Comfeed Indonesia Tbk (IDX: JPFA) targeting the company sales could grow around 15 percent in this year, said the management on Thursday (04/15). To support the targets, the issuer prepared a capital expenditure of Rp1.9 trillion (US$130.13 million).
Over the past year, this animal feed manufacturer posted a net sales of Rp36.96 trillion, fell by 4.91 percent compared to 2019. Head of corporate finance division, Putut Djagiri, stated in this year, her office focuses still on the core business and prepared a number of business strategies to reached the goal.
She said, Japfa wants to strengthen its downstream business through the developing of processing livestock and consumer products, as well as encouraging retail sales growth to consumers through its retail outlets, both offline and online. The company also continuing the efficiency program to improve the company’ profitability.
In this year, said other official, A. Harwanto, the producer will carry out a number of business sector expansion to jack up the production capacites in several of its business lines. The issuer also plans to build several raw material facilities and construct a corn dryer in Palu, Central Sulawesi, the construction of additional chicken slaughterhouses and cold storage.
Furthermore, Japfa will also adding a commercial broiler farm and a commercial layer farm. Part of the funds also will distribute to expand production facilities of its subsidiaries, such as PT Vaksindo Satwa Nusantara and Aquaculture.
On March 23, 2021, the issuer has succeeded released the first sustainability-linked bond in US Dollar denomination worth of $350 million. The company also plans to distributes dividend of Rp40 a share for the 2020 financial year. Last year, the manufacturer booked a net profit Rp916.71 billion ($62.79 million) and net sales of Rp36.96 trillion.
As part of business expansion, in 2020, the company has acquired PT So Good Food and signed a joint venture agreement with Dutch’ Hendrix Genetics Aquaculture B.V., to establish a Broodstock Multiplication Center in Indonesia. The management predicted that the frozen food producer will contribute up to 10 percent of the manufacturer total sales in this year.
While, its parent, Japfa Ltd., plans to sell 80 percent of its Southeast Asia dairy business, Greenfields Dairy Singapore, to TPG Capital Asia and Northstar Group. with total valued of $236 million. TPG is a global investment company from Texas, United States, and has made 88 investments in 13 countries with a value of $11 billion.
While, Northstar is a Singapore headquartered private equity firm managing more than $2.2 billion of portfolios, founded by two Indonesian “crazy rich”, Patrick Walujo and Glenn Sugita.
US$1: Rp14,600
Written by Editorial Staff, Email: theinsiderstories@gmail.com
