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Thursday April 18th, 2024

Sri Lanka’s Bairaha Dec profits down as costs rise

ECONOMYNEXT– Sri Lanka’s Bairaha Farms Plc posted a net loss of 742,875 rupees in December 2019 quarter, from a 43.66 million rupee profit a year earlier on falling revenue and rising costs, interim financials showed.

The group reported a loss of five cents per share for the quarter. For the nine months to December, Bairaha reported 6.72 rupees in losses per share on net losses of 107.51 million rupees.

Bairaha, which owns poultry breeder farms, broiler farms, hatcheries and a meat processing factory, closed trading on Monday 6 rupees down at 107 rupees a share at the Colombo Stock Exchange.

Revenues for the December quarter was 1.16 billion rupees, falling five percent from a year earlier, while cost of sales grew 12 percent to 1.02 billion rupees, leading gross profits to fall 59 percent to 147.55 million rupees.

Revenue fell as market players had expanded plants by 10 percent, expecting a tourist boom to grow the demand for chicken, industry officials said.

The industry had also expected poultry demand in the local market to continue its growth, from 9 kilogrammes per capita consumption in 2017 to 10 kilogrammes in 2018.

However, the Easter Sunday bombings had caused tourist arrivals to fall 19 percent.

Sales had also declined as the economy took successive hits from a balance of payments crisis, the constitutional dilemma and terror attacks.

Cost of sales meanwhile grew due to rising prices of maize, which is used to produce chicken feed.

Poultry producers who expanded are expected to maintain high production as the industry outlook turned favorable with tax cuts and a pickup is now being witnessed in consumer demand.

Meanwhile, Bairaha’s finance costs in December fell 13 percent from a year earlier to 16 million rupees.

Long-term borrowings fell 6.4 percent to 278.61 million rupees in December from the start of the financial year in April, while current borrowings grew 22.9 percent to 229.89 million rupees.

Bairaha drew down cash reserves of 429.73 million rupees to 162.04 million rupees during the nine months, and the firm’s asset base fell 0.5 percent to 3.19 billion rupees.(Colombo/Jan27/2020)


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Sri Lanka’s discussions with bondholders constructive: State finance minister

ECONOMYNEXT – Sri Lankan authorities continue to engage all debt restructuring negotiations in good faith, within principles of equitable treatment among creditors, and with maximum transparency within the norms of such negotiations, State Minister of Finance, Shehan Semasinghe has said.

“It is standard practice, when a representative group of bondholders is formed, to entertain confidential discussions with such group and its appointed advisors. In the case of Sri Lanka, the Ad Hoc Group of Bondholders represents holders controlling more than 50% of the bonds, which make them a privileged interlocutor for Sri Lanka,” Semasinghe said on X (twitter).

“It is well understood that given the price sensitive nature of the negotiations, and according to market regulations, discussions with the Group and its advisors are to be conducted under non-disclosure agreements. This evidently restricts the ability of the Government to unilaterally report about the substance of the discussions.

“The cleansing statement, which was issued on the 16th of April, at the conclusion of this first round of confidential discussions with members of the Group, aims at informing the Sri Lankan people, market participants and other stakeholders to this debt restructuring exercise, about the progress in negotiations. It provides the highest possible level of transparency within the internationally accepted practices in such circumstances.

“As informed in this statement, confidential discussions held in recent weeks with bondholders’ representatives proved constructive, building on the restructuring proposals presented by both parties. During the talks both sides successfully bridged a number of technical issues enabling important progress to be made. Sri Lanka articulated key remaining concerns that need to be addressed in a satisfactory manner.

“The next steps would entail further consultation with the IMF staff regarding assessments of the compatibility of the latest proposals with program parameters. Following these consultations, we hope to continue discussions with the bondholders with a view to reaching common ground ahead of the IMF board consideration of the second review of Sri Lanka’s EFF program.”

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Sri Lanka rupee weakens at 301.00/302.05 to the US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed at 301.00/302.05 to the US dollar in the spot forex market on Tuesday, from 299.00/10 on Tuesday, dealers said. Bond yields were broadly steady.

A bond maturing on 15.12.2026 closed stable at 11.30/35 percent.

A bond maturing on 15.09.2027 closed at 11.90/12.05 percent up from 11.95/12.00 percent.

A bond maturing on 15.12.2028 closed at 12.10/20 percent down from 12.10/15 percent.

A bond maturing on 15.07.2029 closed at 12.25/40 percent.

A bond maturing on 15.03.2031 closed at 12.30/50 percent. (Colombo/Apr17/2024)

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Sri Lanka Treasury Bill yields down across maturities

ECONOMYNEXT – Sri Lanka’s Treasuries yields were down across maturities at Wednesday’s auction with the 3-month yield moving down 7 basis points to 10.03 percent, data from the state debt office showed.

The debt office sold all 30 billion rupees of 3-month bills offered.

The 6-month yield fell 5 basis points to 10.22 percent, with 25 billion rupees of bills offered and 29.98 billion rupees sold.

The 12-month yield dropped 4 basis points to 10.23 percent with 18.01 billion rupees of bills sold after offering 23 billion rupees. (Colombo/Apr17/2024)

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