Japfa has generated a slightly higher revenue of US$4.43 billion for FY2023 over the preceding year. However, patmi for the year worsened to US$30.8 million, from US$6.5 million in FY2022.
Nonetheless, Japfa UD2 points out that its most recent 2HFY2023 performance has improved substantially, following the preceding six months that were weighed down by a combination of cost pressures and weaker prices.
In 2HFY2023, Japfa recorded a positive core patmi without forex of US$21.2 million, versus a negative US$49.3 million reported for 1HFY2023.
CEO Tan Yong Nang calls FY2023 a year of "two contrasting halves" for the company.
"The group’s performance was affected by the cost-of-living pressures, as inflation rose and disposable income, particularly in the low-income segment, were squeezed.
To mitigate risks, the company is boosting its efficiency and streamlining its operations.
See also: IHH Healthcare’s 3QFY2024 patmi remains flat at RM534 mil
"This approach has yielded positive results, and we are encouraged by the continued progress we are making in recalibrating growth.
"Looking forward, we remain confident in our ability to readily harness the ups and downs of the market and capture the long-term growth potential for protein consumption in Emerging Asia," says Tan.
Japfa shares closed at 21 cents on Feb 29, down 4.55%.
