November 15, 2013

Despite a drop in sales, Sri Lanka's Ceylon Grain Elevators  group, which has operations in feed-milling said it returned to profits in the September 2013 quarter helped by lower soy prices.

The group reported earnings of LKR0.99/share (US$0.007). For the nine months to September the group reported earnings of LKR2.26 (US$0.02) per share on total profits of LKR184 million (US$1.4 million).

Profits of the September quarter last year were boosted by LKR466 million (US$3.6 million) one-off gain coming from the sale of an equity stake.

Group revenues in the September quarter dropped 2% to LKR9.1 billion (US$69.4 million), and costs 3% to LKR8.6 billion (US$66 million), allowing gross profits to widen 25% to LKR544 million (US$4.1 million).

Chairman Cheng Chih Kwong, Primus told shareholders the demand for feed dropped in the quarter but the cost of imported soymeal had fallen from earlier highs helping margins.

Three Acre Farms, which has a hatchery and sells poultry products, saw profits go up 92% to LKR120 million (US$915,000) in the quarter. The layer day old chick prices had improved in the September 2013 quarter from a year earlier.

Three Acre Farms had also exported parent day old chicks and hatchable eggs to the region, helping boost margins.