August 12, 2011

Bairaha Farms' net profits plunge in June quarter

Sri Lanka's Bairaha Farms' net profits plummeted 47% to LKR55.1 million (US$502,291) from April to June with earnings declining 1% to LKR565 million (US$5.2 million).

The firm reported earnings of LKR3.45 (US$0.0315) per share for the quarter. Sri Lanka's poultry stocks have been speculator favourites with the sector being driven up to high multiples.

The stock fell LKR12 (US$0.109) in intra-day trading Wednesday (Aug 10).

Bairaha Farms interim accounts showed that cost of sales rose 13% to LKR452 million (US$4.1 million), trimming gross profits 33% to LKR112 million (US$1 million).

The poultry industry is volatile and subject to sudden state intervention.

Sri Lanka's day-old-chick and poultry meat and egg prices rose last year amid shortages as the industry recovered amid state controls in retail prices and corn, the main raw material input.