EconomyNext – Lower prices of key imported raw materials helped Ceylon Grain Elevators, a unit of Prima Limited, Singapore, to make a net profit of 97 million rupees in the December 2014 quarter against a loss of 12 million a year ago.
Earnings per share were 1.62 rupees for the quarter, a stock exchange filing said.
Sales of the firm, which has interests in feed milling, broiler farming and poultry meat processing, rose 37 percent to 3.1 billion rupees during the quarter from a year ago.
A statement said sales improved in the December quarter owing to the improved seasonal demand for both feed and chicken.
Total comprehensive income increased by 94.8 million rupees in the quarter owing to the drop in prices of key imported raw materials and improved performance of commercial farms, it said.
For the financial year ending 31 December 2014, Ceylon Grain Elevators reported EPS of 1.33 rupees against 2.06 rupees the year before with net profit at 80 million rupees.
Annual sales were virtually stagnant at 11.5 billion rupees.
Profits slumped as bad weather throughout the year caused a supply shortage of local maize, a key raw material component for feed, the company said.
"The average price of local maize increased by 10 percent during the year, causing an increase in the cost of production of feed," it said.
"The intense price competition and excess supply in the market for both Day Old Chicks and chicken products have also negatively affected the group’s profit during the year 2014."