ECONOMYNEXT – Sri Lanka's Three Acre Farms (TAFL), a breeder farm and poultry processing firm, said net profit fell 12 percent to 166 million rupees in the March 2018 quarter from a year ago.
Production and exports were affected by an avian flu epidemic and a hike in corporate tax, it said in a stock exchange filing.
Sales rose four percent to 657 million rupees during the period.
Three Acre Farms reported earnings per share of 7.06 rupees for the March quarter. The stock was last traded at 103.80 rupees.
Chief Executive Officer Primus Cheng Chih Kwong said group profitability was adversely affected by a drop in Parent Stock Day Old Chicks (DOCs) production and export.
This was a result of import restrictions placed on Grandparent Stock DOCs caused by avian flu epidemic in the suppliers’ countries, he told shareholders.
“Moreover, the unsold Layer DOCs due to poor demand together with the increase in corporate tax rate had further narrowed the net profit margins.”
Group revenue increased during the period as a result of improved market conditions for Broiler Day Old Chicks, although the demand for Layer DOCs had been adversely affected by continued volatility in the table egg market, Primus Cheng said.
(COLOMBO, May 14, 2018)