Three Acre, Ceylon Grain income high on good market conditions
View(s):Three Acre Farms PLC group revenue increased during the first quarter ended 31 March 2018 as a result of improved market conditions for Broiler Day Old Chicks (DOCs), although the demand for Layer DOCs had been adversely affected by continued volatility in the table egg market, the company has said.
“The group profitability during the period was adversely affected by a drop in Parent Stock DOCs production and export, which was a result of import restriction placed on Grandparent stock DOCs caused by avian flu epidemic in the suppliers’ countries. Moreover, the unsold Layer DOCs due to poor demand together with the increase in corporate tax rate had further narrowed the net profit margins,” Cheng Chih Kwong, Executive Director and CEO has said in his quarterly review.
Group revenue for the first quarter of 2018 was Rs. 657 million compared to Rs. 630.1 million during first quarter of 2017, representing an increase of Rs. 26.9 million or 4 per cent. The company’s revenue for the first quarter of 2018 was Rs. 510.4 million compared to Rs. 530.8 million during the same quarter of 2017, representing a decrease of Rs. 20.4 million or 4 per cent.
The group reported a total comprehensive income of Rs. 166.3 million for the first quarter of 2018 compared to Rs. 189.2 million during the same quarter of 2017, representing a decrease of Rs. 22.9 million or 12 per cent. The company reported a total comprehensive income of Rs. 130.3 million for the first quarter of 2018 compared to Rs. 164.2 million during the same period of 2017, representing a decrease of Rs. 33.9 million or 21 per cent.
Mr. Kong has noted that in Ceylon Grain Elevators PLC in which he’s also the chairman, the group during the quarter under review reported a total comprehensive income of Rs. 314.1 million which is an increase of Rs. 65.2 million or 26 per cent, when compared to Rs. 248.9 million reported during the same quarter of year 2017.
The company reported a total comprehensive income of Rs. 131.4 million in the first quarter of 2018, an increase of Rs. 88.7 million or 208 per cent when compared to Rs. 42.7 million that was reported in the same quarter of 2017.
“The profitability of the group increased during the period under review, mainly due to the improved prices for chicken meat and feed. The decreased cost of production with better feed formulation had further improved the group profitability. The bottom line of the group could have been better if not for increase in corporate tax rate from 12 per cent to 28 per cent”.
The group’s revenue for the first quarter of 2018 was Rs. 3,769.8 million, a decrease of Rs. 63.8 million or 2 per cent when compared to Rs. 3,833.6 million during the same quarter of 2017. The company’s revenue for the first quarter of 2018 was Rs. 3,649.4 million a decrease of Rs. 94.1 million or 3 per cent when compared to Rs. 3,743.5 million during the same quarter of 2017. The revenue of the group was impacted by the decrease in Layer Feed sales volume consequent to the lesser number of Layer birds on ground. Lower export revenue from Broiler Parent Stock DOC and the decreased demand for Layer DOCs due to the depressed market for table eggs had further reduced the group revenue.