Japfa Prepares $102 Million for Poultry Business22 March 2013
INDONESIA - Poultry company PT Japfa Comfeed Indonesia (JPFA) is allotting approximately Rp 1 trillion (US$102 million) for their capital expenditure this year, to keep its revenue and profit in line with the industry’s 15 per cent growth.
The Jakarta Post reports, Japfa’s senior vice president, Putut Djagiri, said on Wednesday that this year’s capital expenditure (capex) figure would closely match the Rp 1 trillion disbursed in 2012.
However, the company was eyeing bank loans instead of a bond issuance, a move they made last year, to raise capex funds, Mr Djagiri added.
“Although we are still considering the size of bank loans, we estimate that the proportion of bank loans to internal cash would stand at 50:50,” Mr Djagiri said, adding that the company possessed roughly Rp 800 billion in internal cash.
The company plans to pour the majority of its expenditure into their poultry business, which contributed over 80 per cent to the company’s revenues.
The company operates animal feed factories in addition to day-old chicken (DOC) farms.
ThePoultrySite News Desk