Two local poultry producers, PT Charoen Pokhpand Indonesia Tbk and PT Japfa Comfeed Indonesia Tbk, posted strong net profits in the first nine months of the year on the back of robust sales and higher prices for feed.
Charoen Pokphand, the country’s largest animal feed and processed poultry producer, said it booked net profit of Rp 401.39 billion ($34.1 million) in the nine months ended in September, a
129.59 percent rise year on year.
Sales also saw a healthy jump from last year, rising 61 percent to Rp 9.98 trillion from Rp 6.2 trillion during the same period in 2007.
The company, however, said its production costs had increased by 61.8 percent to Rp 8.6 trillion from Rp 5.32 trillion a year earlier.
Sales of animal feed and day-old chicks were also up sharply, with feed sales increasing to Rp 7.8 trillion from Rp 4.81 trillion.
In September, Thomas Effendy, deputy president director of Charoen, said that the company expected net profit to rise more than twofold this year from last on the back of strong sales and higher retail prices.
He said the company was looking at a 38 percent rise in sales this year to more than Rp 12 trillion from Rp 8.7 trillion last year.
The company’s animal feed sold for an average of Rp 2,900 per kilogram last year, he said, compared with Rp 3,900 per kilogram as of June this year.
In related news, poultry firm PT Japfa Comfeed Indonesia Tbk announced it had posted a net profit of Rp 253.39 billion in the nine months to September this year, representing a rise of 64 percent, compared with Rp 154.06 trillion in the year-earlier period.
Comfeed’s year-on-year sales rose by 48 percent to Rp 8.33 trillion from Rp 5.64 trillion.
However, the company said total production costs rose 52 percent to Rp 7.04 trillion from Rp 4.64 trillion in the previous year.
Comfeed’s interest costs and current tax liabilities rose to Rp 136.4 billion and Rp 164.2 billion, respectively.
In the nine months through September last year, the company’s interest costs amounted to Rp 62.9 billion, while its total tax liabilities stood at Rp 77.3 billion.
The company said that its total liabilities had climbed 25 percent to Rp 777.03 billion, mainly because of higher bank borrowings, which increased to Rp 449.521 trillion, representing a 172.74 percent rise over the year-earlier period.