THREE ACRE FARMS PLC

Transcription

1 THREE ACRE FARMS PLC INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED 31 MARCH 2017

2 QUARTERLY REVIEW for the first quarter ended 31 March 2017 The Group s revenue for the first quarter of 2017 was Rs Mn compared to Rs Mn during first quarter of 2016, representing an increase of Rs. 6.0Mn or 1%. The Company's revenue for the first quarter of 2017 was Rs Mn compared to Rs Mn during the same quarter of 2016, representing a marginal increase of Rs. 9.2Mn or 2%. The Group reported a total comprehensive income of Rs Mn for the first quarter of 2017 compared to Rs Mn during the same period of 2016, representing a decrease of Rs. 17.4Mn or 8%. The Company reported a total comprehensive income of Rs Mn for the first quarter of 2017 compared to Rs Mn during the same period of 2016, representing a decrease of Rs. 14.7Mn or 8%. The Group was able to maintain its revenue despite the glut in the chicken market as the Group continued to provide high quality of DOC and foster enduring relationship with its valued customers. Better pricing on emerging demand for Parent Stock DOC exports had also contributed positively to the Group s revenue. The volatility in table egg market adversely affected the Layer DOC sales during the period under review. The Group's total comprehensive income decreased mainly due to increase in the cost of feed. However, 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 31 March 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 31 March Change Revenue 630, ,051 1% 530, ,586 Cost of sales (419,843) (378,385) 11% (348,555) (311,293) Gross profit 210, ,666 (14%) 182, ,293 Other income 20,969 4, % 16,772 5,408 Selling and distribution expenses (4,159) (2,369) 76% (4,159) (2,369) Administrative expenses (6,026) (5,966) 1% (4,383) (4,518) Operating profit 221, ,523 (8%) 190, ,814 Net finance income (6%) Profit before tax 221, ,896 (8%) 190, ,157 Taxation (32,261) (35,342) (9%) (26,586) (30,300) Profit for the period 189, ,554 (8%) 164, ,857 Other comprehensive income for the period, net of tax Total comprehensive income for the period 189, ,554 (8%) 164, ,857 Basic earnings per share (Rs.) Three Acre Farms PLC 3

4 CONSOLIDATED STATEMENT OF FINANCIAL POSITION All amounts in Sri Lankan Rupees thousands Group Company As at Assets Non-current assets Property, plant and equipment 1,481,453 1,495,929 1,148,731 1,163,719 Leasehold right over land 68,602 68,776 68,602 68,776 Investment in subsidiary companies Biological assets 482, , , ,615 Total non-current assets 2,032,267 2,038,239 1,603,,318 1,616,110 Current assets Biological assets 14,940 18,248 10,892 16,202 Inventories 100,460 68,478 93,211 62,518 Trade and other receivables 44,102 20,409 42,089 19,833 Amount due from related companies , ,192 Current tax receivables 4,172 4, Cash and cash equivalents 845, , , ,296 Total current assets 1,008, ,076 1,040, ,041 Total assets 3,041,076 2,980,315 2,643,332 2,516,151 Equity Stated capital 623, , , ,604 Retained earnings 1,964,128 1,774,951 1,656,493 1,492,264 Total equity 2,587,732 2,398,555 2,280,097 2,115,868 Liabilities Non-current liabilities Deferred tax liabilities 158, , , ,667 Employee benefits 19,389 19,118 18,236 17,987 Total non-current liabilities 178, , , ,654 Current liabilities Trade and other payables 244, , , ,623 Amount due to related companies 16, ,939 1,035 31,006 Interest bearing borrowings 14,161-12,839 - Total current liabilities 275, , , ,629 Total liabilities 453, , , ,283 Total equity and liabilities 3,041,076 2,980,315 2,643,332 2,516,151 Net assets per share (Rs.) (Sgd.) K.A.R.S. Perera General Manager (Sgd.) Cheng Chih Kwong, Primus Executive Director and Chief Executive Officer (Sgd.)Tan Beng Chuan Executive Director and Group General Manager Three Acre Farms PLC 4

5 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY All amounts in Sri Lankan Rupees thousands Group Stated Retained Total For the three months ended 31 March capital earnings equity Balance as at 1 January ,604 1,010,392 1,633,996 Profit for the period - 206, ,554 Other comprehensive income for the period, net of tax Balance as at 31 March ,604 1,216,946 1,840,550 Balance as at 1 January ,604 1,774,951 2,398,555 Profit for the period - 189, ,177 Other comprehensive income for the period, net of tax Balance as at 31 March ,604 1,964,128 2,587,732 Company Stated Retained Total For the three months ended 31 March capital earnings equity Balance as at 1 January , ,640 1,437,244 Profit for the period - 178, ,857 Other comprehensive income for the period, net of tax Balance as at 31 March , ,497 1,616,101 Balance as at 1 January ,604 1,492,264 2,115,868 Profit for the period - 164, ,229 Other comprehensive income for the period, net of tax Balance as at 31 March ,604 1,656,493 2,280,097 Three Acre Farms PLC 5

6 CONSOLIDATED STATEMENT OF CASH FLOWS All amounts in Sri Lankan Rupees thousands For the three months ended 31 March... Group Company Operating activities Profit before tax 221, , , ,157 Adjustments: Depreciation 26,985 25,058 23,842 21,979 Amortisation of leasehold right over land Usage of biological assets 116, ,147 90,569 77,646 Loss on disposal of property, plant and equipment Fair value loss / (gain) on biological assets 5,000 (3,110) 5,000 (4,350) Exchange gain (354) (403) (306) (368) Interest income (25,343) (36) (21,150) (32) Interest expenses Changes in working capital -Trade and other receivables (22,313) 4,039 (21,119) (729) -Inventories (31,982) (4,263) (30,693) (416) -Trade and other payables (50,434) (18,558) (46,474) (6,034) -Amount due from related companies - (38,604) (78,258) (205,228) -Amount due to related companies (123,530) (195,547) (29,971) (1,840) Employee benefits Cash generated from operations 116, ,540 83,201 90,641 Exchange gain Interest received 23, , Interest paid (3) (30) (1) (25) Employee benefits paid (420) (212) (420) (212) Tax paid (1,145) (496) (277) - Net cash generated from operating activities 139, , ,822 90,804 Investing activities Purchase of property, plant and equipment (12,611) (3,876) (8,956) (3,689) Proceeds from disposal of property, plant and equipment Purchase of biological assets (126,569) (102,938) (92,629) (77,371) Net cash used in investing activities (139,180) (106,814) (101,585) (81,060) Financing activities Net borrowings 14,161 13,309 12,839 12,980 Net cash generated from financing activities 14,161 13,309 12,839 12,980 Increase in cash and cash equivalents 14,362 22,736 14,076 22,724 Movements in cash and cash equivalents At the beginning of the year 830,773 3, ,296 3,162 Increase for the period 14,362 22,736 14,076 22,724 Balance at the end of the period 845,135 26, ,372 25,886 Three Acre Farms PLC 6

7 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 main business of the Group is 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 in the Food and Beverage Sector. The parent company, Ceylon Grain Elevators PLC holds 57.21% (as at 31 March 2017) of the stated capital of the Company. 2. APPROVAL OF FINANCIAL STATEMENTS The interim financial statements of the Company and the Group for the year ended 31 March 2017 are unaudited and authorized for issue by the Board of Directors on 8 May 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 31 March 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 Accounts as at 31 December 2016 which are prepared and presented in accordance with the Sri Lanka Financial Reporting Standards Three Acre Farms PLC 7

8 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 This standard becomes effective for annual periods beginning on or after 1 January The extent of the impact has not been determined. 9. NM Change in percentage term is Not Meaningful. Three Acre Farms PLC 8

9 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 27.79% 27.79% The number of shareholders representing the public holding 2,646 2,884 (03) List of 20 major shareholders based on their shareholding as at 31 March 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 764, Mr.R.A.Rishard 484, Seylan Bank PLC / Sashimaal Ruhash Fernando 354, Eka Limited, Singapore 313, Mr. M.M. Faud 309, Supra Limited, Hong Kong 258, ADL Equities Limited / M.A.M.Arafath Akram 190, Mr. M.Z. Rasheed 165, Assetline Leasing Company Ltd / M.N. Singa Laxana 161, People s Leasing and Finance PLC / M.N. Singa Laxana 112, ADL Equities Limited / M.Z. Rasheed 104, Mrs. D.M. Fernando 100, Seylan Bank PLC / E-TEC H Corporation (pvt) Ltd 96, Commercial Bank of Ceylon PLC / U.C. Bandaranayake 90, Mr. M.A.M.A.Akram 87, Mellon Bank N.A. - Commonwealth of Massachusetts 82, Merchant Bank of Sri Lanka PLC / K.R.U. Gunawardena 80, People s Leasing and Finance PLC / HI Line Trading (Pvt) Ltd 65, Total 20,822, Three Acre Farms PLC 9

10 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 : 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 10