May 11, 2011

Ceylon Grain Elevators posts 64% increase in profit

Sri Lankan poultry firm Ceylon Grain Elevators reported that their March 2011 quarter net profit rose 64% to INR94 million (US$210880.5 million).

"The local maize production was badly affected by the unfavourable weather conditions early this year and government restriction on importation of maize still continues, so the sourcing of the main raw material has become a major challenge for the poultry industry," said the company, a unit of Singapore's Prima.

"In spite of high raw material prices, the company was able to make a profit during the period under review mainly due to its cost effective feed formulation and efficient operations."

Sales grew 26% to INR2.3 billion (US$51598428.4 million) during the quarter with earnings per share rising to INR1.57 (US$0.0352) from INR0.96 (US$0.0215) the year before, according to interim results filed with the stock exchange.