ECONOMYNEXT - Sri Lanka's Ceylon Grain Elevators, a feed milling firm and poultry processing group, said profits rose 45 percent in the March 2018 quarter to 243 million rupees from a year ago.
The profitability of the group increased mainly due to the improved prices for chicken meat and feed, said Primus Cheng Chih Kwong, chief executive of Ceylon Grain Elevators, which is controlled by Singapore’s Prima group.
The company reported earnings of 4.05 rupees a share in the quarter, according to interim accounts filed with the stock exchange. .
The company’s share was last traded at 70 rupees at mid-day Monday.
March 2018 sales were down two percent to 3.8 billion rupees from a year ago because of lower layer feed sales and lower exports of broiler chicks and lower demand for eggs.
Primus Cheng said group sales were impacted by the decrease in Layer Feed sales volume consequent to the lesser number of Layer birds on ground.
“Lower export revenue from Broiler Parent Stock Day Old Chicks (DOCs) and the decreased demand for Layer DOCs due to the depressed market for table eggs had further reduced group revenue,” he said.
He said the decreased cost of production with better feed formulation had helped improve group profitability.
“The bottom line of the group could have been better if not for increase in corporate tax rate from 12% to 28%,” he said.
(COLOMBO, May 14, 2018)