Sri Lanka’s LMF Sept profits down 89-pct
ECONOMYNEXT – Profits at Lanka Milk Foods Plc fell 89 percent from a year earlier to 21.5 million rupees in the September 2018 quarter amidst falling revenue and higher costs, interim accounts showed.
Earnings per share was 54 cents in the quarter. In the six months to end September 2018, earnings were 1.08 rupees a share on a profit of 43.2 million rupees, down 83 percent from a year earlier, statements filed with the Colombo Stock Exchange showed.
Lanka Milk Foods, controlled by businessmen Harry Jayawardena through Milford Exports and listed Melstacorp Plc, was trading 80 cents lower at 135.20 rupees on Wednesday.
In the quarter, revenue fell 3 percent from a year earlier to 1.5 billion rupees, cost of sales increased 8 percent to 1.3 billion rupees leading to a 45 percent contraction in gross profits to 180.7 million rupees.
Administrative expenses grew 3 percent to 94.6 million rupees and distribution costs rose 13 percent to 94.8 million rupees.
Net finance costs surged 400 percent to 29.5 million rupees.
In the six months to end September 2018, milk powder sale fell 3 percent from a year earlier to 903 million rupees with earnings declining 175 percent to a loss of 51.3 million rupees.
Liquid and other milk products sales grew 5 percent with earnings flat at 203 million rupees.
The agriculture segment of Lanka Milk Foods reported flat revenue growth at 277 million rupees with earnings falling 209 percent to a loss of 41 million rupees.
Lanka Milk Foods is investing 2 billion rupees on dairy farm with 2,000 milch cows to meet growing demand for fresh dairy products.
It already has 2,100 million head of cattle of Ayrshire and Friesian breeds grazing in 1,500 acres of land in Ambewela, 6,000m above sea-level.
The milk yield is around 16,000 litres a day. (COLOMBO, 21 November 2018)