THREE ACRE FARMS PLC

Transcription

1 THREE ACRE FARMS PLC INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2017

2 QUARTERLY REVIEW for the third quarter ended 30 September 2017 The Group s revenue for the third quarter of 2017 was Rs Mn compared to Rs Mn during same quarter of 2016, representing a decrease of Rs Mn or 12%. The Group's revenue for the nine months of 2017 was Rs. 1,787.6 Mn compared to Rs. 1,832.3 Mn during the nine months of 2016, representing an decrease of Rs Mn or 2%. The Group reported a total comprehensive income of Rs Mn for the third quarter of 2017 compared to Rs Mn during the same quarter of 2016, representing a decrease of Rs Mn or 40%. The Group reported a total comprehensive income of Rs Mn for the nine months period of 2017 compared to Rs Mn during the nine months period of 2016 representing a decrease of Rs Mn or 14%. Group's revenue has declined during the quarter under review as a result of the decreased demand for layer and broiler Day Old Chicks caused by the prevailing glut situation in the local chicken and table eggs market, which was cyclical in nature. Continued increase in raw material cost and overheads had adversely affected the Group's performance. However, the Management is confident that the Group will continue to reap the best out of the available opportunities in the market. The Company and the Group have adhered to the Sri Lanka Financial Reporting Standards in the preparation of the interim financial statements for the period ended 30 September There have been no other events subsequent to the interim period which require disclosure in the interim financial statements. (Sgd.) Cheng Chih Kwong, Primus Executive Director and Chief Executive Officer (Sgd.) S S P Corporate Services (Private) Limited Secretaries Three Acre Farms PLC 2

3 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME All amounts in Sri Lankan Rupees thousands Group Group Company For the three months ended 30 September Change Revenue 555, ,238 (12%) 440, ,879 Cost of sales (434,197) (380,578) 14% (352,572) (309,084) Gross profit 121, ,660 (52%) 88, ,795 Other income / (expenses) 13,862 4, % (18,238) 25,016 Selling and distribution expenses (5,165) (2,149) 140% (5,017) (2,149) Administrative expenses (6,420) (6,092) 5% (4,666) (4,654) Operating profit 123, ,494 (50%) 60, ,008 Net finance expenses (319) (327) (2%) (315) (251) Profit before tax 123, ,167 (50%) 59, ,757 Taxation (15,285) (66,200) (77%) (6,004) (63,736) Profit for the period 107, ,967 (40%) 53, ,021 Other comprehensive income for the period, net of tax Total comprehensive income for the period 107, ,967 (40%) 53, ,021 Basic earnings per share (Rs.) Three Acre Farms PLC 3

4 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME All amounts in Sri Lankan Rupees thousands Group Group Company For the nine months ended 30 September Change Revenue 1,787,570 1,832,282 (2%) 1,474,300 1,519,536 Cost of sales (1,273,225) (1,139,738) 12% (1,052,193) (928,580) Gross profit 514, ,544 (26%) 422, ,956 Other income / (expenses) 58,772 18, % (18,034) 35,906 Selling and distribution expenses (13,125) (8,335) 57% (12,977) (8,335) Administrative expenses (18,260) (19,232) (5%) (13,187) (14,873) Operating profit 541, ,492 (21%) 377, ,654 Net finance income / (expenses) 700 (393) NM 732 (336) Profit before tax 542, ,099 (21%) 378, ,318 Taxation (80,846) (149,142) (46%) (58,740) (131,536) Profit for the period 461, ,957 (14%) 319, ,782 Other comprehensive income for the period, net of tax Total comprehensive income for the period 461, ,957 (14%) 319, ,782 Basic earnings per share (Rs.) Three Acre Farms PLC 4

5 CONSOLIDATED STATEMENT OF FINANCIAL POSITION All amounts in Sri Lankan Rupees thousands Group Company As at Assets Non-current assets Property, plant and equipment 1,430,117 1,495,929 1,103,820 1,163,719 Leasehold right over land 68,255 68,776 68,255 68,776 Investment in subsidiary companies Biological assets 460, , , ,615 Total non-current assets 1,959,109 2,038,239 1,507,383 1,616,110 Current assets Biological assets 14,954 18,248 12,107 16,202 Inventories 90,052 68,478 81,487 62,518 Trade and other receivables 48,224 20,409 41,889 19,833 Amount due from related companies 209, , ,192 Current tax receivables 4,168 4, Cash and cash equivalents 910, , , ,296 Total current assets 1,277, ,076 1,211, ,041 Total assets 3,236,324 2,980,315 2,719,203 2,516,151 Equity Stated capital 623, , , ,604 Retained earnings 2,142,357 1,774,951 1,717,985 1,492,264 Total equity 2,765,961 2,398,555 2,341,589 2,115,868 Liabilities Non-current liabilities Deferred tax liabilities 204, , , ,667 Employee benefits 17,733 19,118 16,534 17,987 Total non-current liabilities 222, , , ,654 Current liabilities Trade and other payables 240, , , ,623 Amount due to related companies 3, ,939 2,496 31,006 Interest bearing borrowings 4,250-4,250 - Total current liabilities 247, , , ,629 Total liabilities 470, , , ,283 Total equity and liabilities 3,236,324 2,980,315 2,719,203 2,516,151 Net assets per share (Rs.) (Sgd.) K.A.R.S. Perera General Manager (Sgd.) Wickrema Senaka Weerasooria Non-Executive Independent Chairman (Sgd.) Cheng Chih Kwong, Primus Executive Director and Chief Executive Officer Three Acre Farms PLC 5

6 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY All amounts in Sri Lankan Rupees thousands Group Stated Retained Total For the nine months ended 30 September capital earnings equity Balance as at 1 January ,604 1,010,392 1,633,996 Profit for the period - 533, ,957 Dividend paid - (49,444) (49,444) Other comprehensive income for the period, net of tax Balance as at 30 September ,604 1,494,905 2,118,509 Balance as at 1 January ,604 1,774,951 2,398,555 Profit for the period - 461, ,586 Dividend paid - (94,180) (94,180) Other comprehensive income for the period, net of tax Balance as at 30 September ,604 2,142,357 2,765,961 Company Stated Retained Total For the nine months ended 30 September capital earnings equity Balance as at 1 January , ,640 1,437,244 Profit for the period - 471, ,782 Dividend paid - (49,444) (49,444) Other comprehensive income for the period, net of tax Balance as at 30 September ,604 1,235,978 1,859,582 Balance as at 1 January ,604 1,492,264 2,115,868 Profit for the period - 319, ,901 Dividend paid - (94,180) (94,180) Other comprehensive income for the period, net of tax Balance as at 30 September ,604 1,717,985 2,341,589 Three Acre Farms PLC 6

7 CONSOLIDATED STATEMENT OF CASH FLOWS All amounts in Sri Lankan Rupees thousands Group Company For the nine months ended 30 September Operating activities Profit before tax 542, , , ,318 Adjustments: Depreciation 80,728 75,272 71,152 65,992 Amortisation of leasehold right over land Usage of biological assets 358, , , ,210 Profit on disposal of property, plant and equipment (264) - (264) - Fair value loss / (gain) on biological assets 19,942 (15,513) 23,187 (23,685) Exchange (gain ) / loss (717) 324 (740) 276 Dividend income - - (11,640) (9,330) Interest income (75,972) (226) (62,776) (213) Interest expenses Changes in working capital -Trade and other receivables (27,815) (7,931) (22,056) (10,831) -Inventories (21,574) (25,470) (18,969) (14,884) -Trade and other payables (24,756) 62,413 (25,605) 63,070 -Amount due from related companies (209,698) (433,600) (206,463) (542,474) -Amount due to related companies (136,811) (195,547) (28,510) (7,881) Employee benefits 2,075 2,673 2,007 2,493 Cash generated from operations 506, , , ,121 Exchange gain / (loss) 717 (324) 740 (276) Interest received 74, , Interest paid (17) (69) (8) (60) Employee benefits paid (3,460) (320) (3,460) (320) Tax paid (32,274) (5,598) (29,194) - Net cash generated from operating activities 546, , , ,678 Investing activities Purchase of property, plant and equipment (15,019) (19,851) (11,356) (19,129) Proceeds from disposal of property, plant and equipment Proceeds from dividend income ,640 9,330 Purchase of biological assets (362,104) (336,380) (244,508) (260,562) Net cash used in investing activities (376,756) (356,231) (243,857) (270,361) Financing activities Dividend paid (94,180) (49,444) (94,180) (49,444) Net borrowings / (settlements) 4,250 (13,273) 4,250 (11,198) Net cash used in financing activities (89,930) (62,717) (89,930) (60,642) Increase in cash and cash equivalents 79,346 25,865 68,386 25,675 Movements in cash and cash equivalents At the beginning of the year 830,773 3, ,296 3,162 Increase for the period ,865 68,386 25,675 Balance at the end of the period 910,119 29, ,682 28,837 Three Acre Farms PLC 7

8 NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS 1. CORPORATE INFORMATION Three Acre Farms PLC (the Company ) is a Quoted Public Company with limited liability, incorporated and domiciled in Sri Lanka. The address of the Company s registered office is No. 15, Rock House Lane, Colombo 15, Sri Lanka. The principal businesses of the Group are selective breeding, hatching, sale of Commercial Day Old Chicks (DOC), both Broiler (for chicken meat) and Layer (for the production of table eggs), grandparent farm operation, import grandparent DOC, advanced technology breeding and commercial broiler farming. The Company was listed in the Colombo Stock Exchange under the Food and Beverage Sector. The parent company, Ceylon Grain Elevators PLC holds 57.21% of the stated capital of the Company. 2. APPROVAL OF FINANCIAL STATEMENTS The interim financial statements of the Company and the Group for the period ended 30 September 2017 are unaudited and authorised for issue by the Board of Directors on 7 November BASIS OF PREPARATION The interim financial statements of the Company and the Group have been prepared in compliance with Sri Lanka Accounting Standard (LKAS) 34 - Interim Financial Reporting. The interim financial statements have been prepared on a historical cost basis except for defined benefit obligation and biological assets. 4. ACCOUNTING POLICIES The accounting policies adopted are consistent with those of the previous financial year. 5. CONTINGENT LIABILITIES There has not been any significant change in the nature of the contingent liabilities, which were disclosed in the Annual Report for the year ended 31 December EVENTS AFTER THE REPORTING PERIOD Subsequent to 30 September 2017, there are no events which require adjustments to or disclosure in the financial statements. 7. COMPARATIVE INFORMATION Comparative figures have been reported to be in line with the published Audited Financial Statements as at 31 December 2016 which are prepared and presented in accordance with the Sri Lanka Financial Reporting Standards. Three Acre Farms PLC 8

9 NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Contd.) 8. NEW STANDARDS AND INTERPRETATIONS NOT YET ADOPTED SLFRS 9 Financial Instruments SLFRS 9 as issued reflects the replacement of LKAS - 39 and applies to the classification and measurement of financial assets and financial liabilities as defined in LKAS 39 - Financial Instruments: Recognition and Measurement. This standard becomes effective for annual periods beginning on or after 1 January SLFRS 15 Revenue from Contracts with Customers SLFRS 15 establishes a comprehensive framework to determine when and amount of revenue is recognised. It replaces existing revenue recognition guidance, including LKAS 18 - Revenue and LKAS 11 - Construction Contracts. This standard becomes effective for annual periods beginning on or after 1 January SLFRS 16 - Leases SLFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases. This standard requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under LKAS 17 - Leases. This standard becomes effective for annual periods beginning on or after 1 January 2019 (early adoption is permitted). The Group is assessing the potential impact on its consolidated financial statements resulting from the application of these new standards. 9. NM Change in percentage term is Not Meaningful. Three Acre Farms PLC 9

10 INVESTOR INFORMATION (01) Market Price per Share As at As at Highest Market Price (Rs.) Lowest Market Price (Rs.) Closing Market Price (Rs.) (02) Public Shareholding As at As at The percentage of shares held by the public 27.78% 27.78% The number of shareholders representing the public holding 2,636 2,688 (03) List of 20 major shareholders based on their shareholding as at 30 September 2017 No. Name No of Percentage Shares 1 Ceylon Grain Elevators PLC 13,469, Prima Limited, Singapore 3,532, HSBC Intl Nom Ltd UBS AG Zurich 648, Mr.R.A.Rishard 502, Seylan Bank PLC / S.R. Fernando 354, Eka Limited, Singapore 313, Supra Limited, Hong Kong 258, Mr.M.M.Fuad 192, ADL Equities Limited / M.A.M.Arafath Akram 190, Assetline Leasing Company Ltd / M.N. Singa Laxana 170, People s Leasing and Finance PLC / M.N. Singa Laxana 128, Elgin Investments Limited 125, Mr.M.Z.Rasheed 116, People s Leasing and Finance PLC / HI Line Trading (Pvt) Ltd 102, Mrs. D.M. Fernando 100, Dr. M.A.M.A.Akram 92, Commercial Bank of Ceylon PLC / U.C. Bandaranayake 90, Mellon Bank N.A.-Commonwealth of Massachusetts 82, Merchant Bank of Sri Lanka PLC / Mr.K.R.U.Gunawardena 80, Mr.R.E.Rambukwelle 64, Total 20,616, Three Acre Farms PLC 10

11 CORPORATE INFORMATION Company Name Lawyers Three Acre Farms PLC Varners Lanka Law Office D.L. & F. De Saram Company Registration No. PQ 195 Auditors Registered Office KPMG, Colombo, Sri Lanka. No.15, Rock House Lane, Colombo 15, Sri Lanka. Tel : +94 (11) or 8 / / to Company Secretary Fax : +94 (11) S S P Corporate Services (Private) Limited info.cge@prima.com.lk No.101, Inner Flower Road, Colombo 3. Stated Capital Rs. 623,604,000 Number of Shares Bankers Hatton National Bank PLC Nations Trust Bank PLC 23,545,000 Ordinary Shares Bank of Ceylon Subsidiary Companies Ceylon Pioneer Poultry Breeders Limited Millennium Multibreeder Farms (Private) Limited National Development Bank PLC Seylan Bank PLC Union Bank of Colombo PLC Name of Directors Mr.Wickrema Senaka Weerasooria Mr. Cheng Chih Kwong, Primus Mr. Tan Beng Chuan Mr. Cheng Koh Chuen, Bernard Mr. Sunil Leeniyagoda Mr. Sunil Karunanayake - Non-Executive Independent Chairman - Executive Director and Chief Executive Officer - Executive Director and Group General Manager - Non-Executive Director - Non-Executive Director - Non-Executive Independent Director Directors Shareholding Mr. Wickrema Senaka Weerasooria Mr. Cheng Chih Kwong, Primus Mr. Tan Beng Chuan Mr. Cheng Koh Chuen, Bernard Mr. Sunil Leeniyagoda Mr. Sunil Karunanayake - 2,000 Shares - 19 Shares - Nil - Nil - Nil - Nil Three Acre Farms PLC 11