PT Japfa Comfeed Indonesia Tbk (JPFA) at the end of  2020 posted a net profit of  Rp916.71 billion, declining from that in the same period in 2019.

Based on the disclosure of information, on Tuesday (2/3), in 2020 the company's profit attributable to the parent company owners decreased 0.48 percent compared to the December 31, 2019 period, which reached Rp1.76 trillion.

The company's net sales also fell 4.91 percent to Rp36.96 trillion from the same period in 2019 of  Rp38.87 trillion. The decline in net sales came from the animal feed business segment, processing livestock and consumer products, cattle farming, and chicken breeding which decreased compared to 2019.

Meanwhile, the commercial livestock, aquaculture, and other trade segments experienced an increase.

Meanwhile, the company's cost of goods sold was Rp29 trillion, or a decrease of  6.45 percent from the December 31, 2019 period, which reached Rp.31 trillion. The company's gross profit also decreased 5.71 percent to Rp7.42 trillion from the previous Rp7.87 trillion.

The company's operating profit also decreased by 20.51 percent to Rp2.48 trillion from 2019, amounting to Rp3.12 trillion. Profit before income tax until the end of  2020 was recorded at Rp1.67 trillion, a decrease of  32.93 percent compared to the same period the previous year, which booked Rp2.49 trillion.

As of December 31, 2020, the total assets were Rp25.95 trillion, a decrease of  2.62 percent from December 31, 2019, which was Rp26.65 trillion. Meanwhile, total liabilities amounted to Rp14.53 trillion, down 1.49 percent from Rp14.75 trillion, and total equity decreased by 4.03 percent to Rp11.41 trillion from Rp11.89 trillion.

Previously, Japfa Comfeed Indonesia's parent company, Japfa Ltd, targeted the sale of an 80 percent stake in Greenfields Dairy Singapore Pte Ltd to TPG and Northstar Group for US$236 million. Japfa will use the total of US$150 million proceeds from the sale of shares for the distribution of special interim dividends to shareholders. Japfa has obtained shareholder approval for the plan to sell Greenfields shares on January 26, 2021. This agreement complements the conditional share purchase agreement (SPA) that Japfa conducted with Freshness Holdings on December 6, 2020. Freshness Holdings is a company owned by TPG and the Northstar Group.

"The transaction price to be paid by TPG represents the implied equity valuation of  Greenfields Dairy of  US$295 million. The valuation is around four times the net asset value (NAV) which is equivalent to US$81.3 million as of September 30, 2020," said management in information disclosure on the Singapore Stock Exchange.

Meanwhile, the implied enterprise value of  Greenfields Dairy is estimated to be around US$334.7 million, or 21 times the EBITDA of  US$16.1 million for the financial statements of December 31, 2019. Management estimates that the gain from the sale of  Greenfields shares will be around US$213.7 million as of September 30, 2020, while the cash to be received is around US$244 million.