Monday, January 11, 2010

CP Prima blamed the virus

PT Central Proteinaprima (CPRO) Tbk blamed the Infectious MyoNecrosis Virus (IMNV) for its declining performance. With limited cash in hands, CPRO defaulted the payment of interest on its offshore bonds due December 28, 2009. As of September 30, 2009, CPRO had cash of Rp189 billion, declined substantially from Sept 2008. Sales declined 13.7% in the period. 
CPRO's gross profit slashed 33.5% to Rp755.9 billion in the period, while operating expenses increased 11.4% to Rp755.6 billion. As a result, CPRO reported operating profit of Rp0.3 billion only, crashed 99.9% from Rp456 billion in the same period of 2008.
How serious is the virus? 
Well, CPRO reported that shrimp products sales revenue declined 30.1%, while shrimp feeds dropped 20.8% in the period. 
Interestingly, frozen shrimp sales revenue in Q3 2009 was only declined 7.4%, mainly due to appreciation of rupiah against USD. Frozen shrimp is the biggest contributor for CPRO's sales, accounted for 33% of total sales. Sales volume for frozen shrimp declined from 12,817 tons in Q1 2009 to 7,565 tons in Q3, but the Q3 output was higher than Q2. Bondholders have appointed independent aquaculture consultant named Matthew Briggs to review the seriousness of the virus attack.
According to Briggs, the outbreak of IMNV in CPRO farm caused a further reduction in average pond yields to 2.5 tons/0.5 ha pond/crop.  




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