High product and geographic concentration. Some margin sensitivity to volatile raw material prices and currency fluctuations. Tough industry conditions likely to persist for the next 12 months at least. Strong and sustainable position in the growing poultry-feed and breeding sectors in Indonesia. Thin, but stable, margins, and tested ability to pass through raw material price fluctuations. Good cash flow stability. Rapid expansion and negative free operating cash flows over the next two years. High reliance on short-term debt for funding working capital. Currency mismatch with a fairly high proportion of foreign currency-denominated debt. The stable outlook reflects our expectation that PT Japfa Comfeed Indonesia Tbk.'s (Japfa) funds from operations (FFO)-to-debt ratio will stabilize at 12%-14% over the next 12-18 months.
