JAKARTA (Yosefardi) – PT Japfa Comfeed Tbk (JPFA), one of the largest poultry players in Indonesia, advices that, based on preliminary numbers, it will register a net loss for the quarter ended March 31, 2015.
The net loss is the result of a combination of two main factors; first, the continuing weakness in the poultry market and in the purchasing power of low-income consumers.
Second is the translation loss from the company’s US dollar loans as a result of the 5% drop in the Rupiah to US Dollar exchange rate as at March 31, 2015.
Taking into account severe oversupply in the day-old-chick (DOC), JPFA said it can not set an ambitious target this year. Depending on developments in DOC in the second half, JPFA expects growth around 10% this year. There is also a possibility of flat growth this year.