Sri Lanka’s Ceylon Grain Elevators net up 101.6-pct in Sept
ECONOMYNEXT- Sri Lankan animal feed and poultry producer Ceylon Grain Elevators Plc net profits in the September quarter grew 101.6 percent from a year earlier to 233.3 million rupees with higher feed and chicken sales, interim financials said.
"Group’s revenue and profitability improved due to increased demand for feed and chicken meat during the quarter under review," Director/Chief Executive Cheng Chih Kwong Primus told shareholders.
"Growth in feed sales volume was driven by consistency in feed quality and maintaining strong partnerships with key chicken processors," he said.
"Profitability of the group has been sustained by efficiency in the farms’ operations and the continued success in optimising formulated feed costs."
The firm said its earnings per share were 3.89 rupees.
Earnings per share for the first nine months of the year were 10.83 rupees, with net profits up 53.2 percent from a year earlier to 649.8 million rupees.
Revenue for the September quarter was up 31 percent from a year earlier to 4.9 billion rupees, while cost of sales grew 27 percent to 4.4 billion rupees, and gross profits grew 78 percent to 506.6 million rupees.
Finance income grew 45 percent to 101.8 million rupees and finance costs were 51.3 million rupees.
The firm had 39.6 million rupees in short-term borrowings by September, from no borrowings at the start of the year.
In the first nine months, post-tax profits from feed milling and farming grew 141.7 percent from a year earlier to 479.2 million rupees while revenue grew 9.7 percent to 12.2 billion rupees.
Post-tax profits from poultry production and sales grew 14.8 percent to 530 million rupees with revenue up 10.5 percent to 2 billion rupees.
The firm said the December quarter will be challenging.
"The Group foresees a challenging market situation in the forthcoming quarter as cost of production will increase substantially due to increase in key raw material prices riding on the severe depreciation of LKR against USD," the chief executive said.
"Also the Group anticipates lower demand with the declining consumer purchasing power as a result of price hikes on basic consumer staples and inclement weather," he said. (Colombo, 14 November 2018)