CEYLON GRAIN ELEVATORS PLC

Transcription

1 CEYLON GRAIN ELEVATORS PLC INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED 31 MARCH 2018 Ceylon Grain Elevators PLC 1

2 QUARTERLY REVIEW for the first quarter ended 31 March 2018 The Group's revenue for the first quarter of 2018 was Rs.3,769.8 Mn, a decrease of Rs.63.8 Mn or 2%, when compared to Rs.3,833.6 Mn during the same quarter of The Company's revenue for the first quarter of 2018 was Rs.3,649.4 Mn, a decrease of Rs.94.1 Mn or 3%,when compared to Rs.3,743.5 Mn during the same quarter of The Revenue of the Group was impacted by the decrease in Layer Feed sales volume consequent to the lesser number of Layer birds on ground. Lower export revenue from Broiler Parent Stock Day Old Chicks (DOCs) and the decreased demand for Layer DOCs due to the depressed market for table eggs had further reduced the Group Revenue. During the quarter under review, the Group reported a total comprehensive income of Rs Mn, an increase of Rs.65.2 Mn or 26%, when compared to Rs Mn reported during the same quarter of year The Company reported a total comprehensive income of Rs Mn in the first quarter of 2018, an increase of Rs.88.7 Mn or 208%, when compared to Rs.42.7 Mn that was reported in the same quarter of The profitability of the Group increased during the period under review, mainly due to the improved prices for chicken meat and feed. The decreased cost of production with better feed formulation had further improved the Group profitability. The bottom line of the Group could have been better if not for increase in corporate tax rate from 12% to 28%. The Company and the Group have throughout 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 Ceylon Grain Elevators 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 3,769,776 3,833,597 (2%) 3,649,401 3,743,484 Cost of sales (3,263,892) (3,437,657) (5%) (3,329,571) (3,576,939) Gross profit 505, ,940 28% 319, ,545 Other income 13,625 1, % 11,063 9,166 Selling and distribution expenses (59,914) (54,310) 10% (57,461) (50,151) Administrative expenses (104,892) (83,623) 25% (100,875) (80,179) Operating profit 354, ,671 37% 172,557 45,381 Finance income 77,046 63,551 21% 31,453 32,369 Finance costs (12,756) (6,284) 103% (14,585) (6,624) Share of profit of associate 1, % - - Profit before tax 420, ,938 33% 189,425 71,126 Taxation (106,756) (68,056) 57% (57,982) (28,437) Profit for the period 314, ,882 26% 131,443 42,689 Other comprehensive income for the period, net of tax Total comprehensive income for the period 314, ,882 26% 131,443 42,689 Profit attributable to : Equity holders of the parent 242, , ,443 42,689 Non-controlling interest 71,143 80, , , ,443 42,689 Total comprehensive income attributable to : Equity holders of the parent 242, , ,443 42,689 Non-controlling interest 71,143 80, , , ,443 42,689 Basic earnings per share (Rs.) Ceylon Grain Elevators 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 2,566,780 2,591, , ,714 Leasehold right over land and buildings 225, , , ,049 Intangible assets 35,539 39,445 35,539 39,445 Investment in associate company 33,821 31, Investment in subsidiary companies , ,920 Biological assets 500, , Total non-current assets 3,361,757 3,391,403 1,332,384 1,335,161 Current assets Biological assets 17,624 27, Inventories 3,046,612 3,246,821 2,966,020 3,170,521 Trade and other receivables 506, , , ,026 Amount due from related companies 2,011-7, Current tax receivable 28,375 28,375 24,150 24,150 Cash and cash equivalents 2,922,365 2,857,444 1,042,760 1,160,125 Total current assets 6,523,871 6,779,348 4,465,801 4,900,659 Total assets 9,885,628 10,170,751 5,798,185 6,235,820 Equity and liabilities Equity Stated capital 1,017,996 1,017,996 1,017,996 1,017,996 Retained earnings 4,937,426 4,694,462 2,755,648 2,624,205 Total equity attributable to equity holders of the parent 5,955,422 5,712,458 3,773,644 3,642,201 Non-controlling interest 1,337,893 1,266, Total equity 7,293,315 6,979,208 3,773,644 3,642,201 Liabilities Non-current liabilities Deferred tax liabilities 354, ,781 57,255 59,354 Employee benefits 86,129 83,698 68,837 66,659 Total non-current liabilities 440, , , ,013 Current liabilities Trade and other payables 1,025,946 1,036, , ,521 Amount due to related companies 1,089,872 1,712,250 1,185,191 1,747,085 Interest bearing borrowings 35,552-33,881 - Total current liabilities 2,151,370 2,749,064 1,898,449 2,467,606 Total liabilities 2,592,313 3,191,543 2,024,541 2,593,619 Total equity and liabilities 9,885,628 10,170,751 5,798,185 6,235,820 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 Ceylon Grain Elevators PLC 4

5 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY All amounts in Sri Lankan Rupees thousands Group Attributable to equity holders of the parent Non- Total For the three months ended 31 March Stated Retained Total controlling equity capital earnings interest Balance as at 1 January ,017,996 4,048,476 5,066,472 1,026,343 6,092,815 Profit for the period - 167, ,933 80, ,882 Other comprehensive income for the period, net of tax Balance as at 31 March ,017,996 4,216,409 5,234,405 1,107,292 6,341,697 Balance as at 1 January ,017,996 4,694,462 5,712,458 1,266,750 6,979,208 Profit for the period - 242, ,964 71, ,107 Other comprehensive income for the period, net of tax Balance as at 31 March ,017,996 4,937,426 5,955,422 1,337,893 7,293,315 Company Stated Retained Total For the three months ended 31 March capital earnings equity Balance as at 1 January ,017,996 2,319,029 3,337,025 Profit for the period - 42,689 42,689 Other comprehensive income for the period, net of tax Balance as at 31 March ,017,996 2,361,718 3,379,714 Balance as at 1 January ,017,996 2,624,205 3,642,201 Profit for the period - 131, ,443 Other comprehensive income for the period, net of tax Balance as at 31 March ,017,996 2,755,648 3,773,644 Ceylon Grain Elevators PLC 5

6 CONSOLIDATED STATEMENT OF CASH FLOWS All amounts in Sri Lankan Rupees thousands Group Company For the three months ended 31 March Operating activities Profit before tax 420, , ,425 71,126 Adjustments: Depreciation 58,421 55,654 28,270 24,748 Amortisation of leasehold right over land and buildings 2,141 2,140 1,966 1,966 Amortisation of intangible assets 3,906 3,285 3,906 3,285 Usage of biological assets 125, , Loss on disposal of property, plant and equipment Fair value (gain) / loss on biological assets (3,489) 5, Exchange loss 12,404 6,078 14,238 6,421 Interest income (77,046) (63,551) (31,453) (32,369) Interest expense Share of profit of associate (1,870) Changes in working capital -Trade and other receivables 112,175 25, ,186 51,211 -Inventories 210, , , ,680 -Trade and other payables (90,128) (111,124) (91,148) (65,904) -Amount due from related companies (2,011) (10,142) (6,194) 29,070 -Amount due to related companies (622,378) 220,720 (561,894) 322,772 Employee benefits 2,899 3,095 2,400 2,400 Cash generated from/ (used in) operations 151, ,066 (117,849) 768,693 Exchange loss (12,404) (6,078) (14,238) (6,421) Interest received 58,395 53,798 21,376 26,749 Interest paid (352) (206) (347) (203) Employee benefits paid (468) (2,838) (222) (2,417) Tax paid (12,813) (2,630) - - Net cash generated from / (used in) operating activities 184, ,112 (111,280) 786,401 Investing activities Purchase of property, plant and equipment (44,640) (298,885) (39,966) (286,274) Purchase of leasehold right over land and buildings - (58,733) - (58,733) Proceeds from disposal of property, plant and equipment Purchase of biological assets (110,975) (126,569) - - Net cash used in investing activities (154,875) (484,187) (39,966) (345,007) Financing activities Net borrowings 35,552 81,436 33,881 67,275 Net cash generated from financing activities 35,552 81,436 33,881 67,275 Increase/ (decrease) in cash and cash equivalents 64, ,361 (117,365) 508,669 Movements in cash and cash equivalents At the beginning of the period 2,857,444 2,186,018 1,160,125 1,151,777 Increase / (decrease) for the period 64, ,361 (117,365) 508,669 Balance at the end of the period 2,922,365 2,714,379 1,042,760 1,660,446 Ceylon Grain Elevators PLC 6

7 NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS 1. CORPORATE INFORMATION Ceylon Grain Elevators 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 manufacturing and selling of poultry feed and other animal feed, importing and selling of poultry equipment, drugs and vaccines, operating of poultry breeder farms, raising grandparent and parent stock and hatcheries, hatching and selling of day old chicks, operation of commercial farms, poultry processing and distribution and provision of warehouse facilities. The Company was listed in the Colombo Stock Exchange in Manufacturing Sector. Prima Limited, Singapore, holds 45.45% of the issued share capital of the Company. 2. APPROVAL OF FINANCIAL STATEMENTS The interim financial statements of the Company and the Group for the three months ended 31 March 2018 are unaudited and authorised for issue by the Board of Directors on 10 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 2018, 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 published Audited Accounts as at 31 December 2017 which are prepared and presented in accordance with the Sri Lanka Financial Reporting Standards. Ceylon Grain Elevators PLC 7

8 NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Contd.) 8. NEW STANDARD AND INTERPRETATIONS NOT YET ADOPTED 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 this new standard. Ceylon Grain Elevators PLC 8

9 NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Contd.) All amounts in Sri Lankan Rupees thousands 9. SEGMENT INFORMATION For the three months ended 31 March 2018 Milling and Farming Poultry Breeding and Commercial Others Elimination/ adjustment Consolidated Sales to outsiders 3,429, ,676 2,666-3,769,776 Inter segmental sales 219, ,355 30,332 (569,654) - Total revenue 3,649, ,031 32,998 (569,654) 3,769,776 Operating income 172, ,563 14, ,703 Finance income 31,453 37,881 7,712-77,046 Finance costs (14,585) 1,875 (46) - (12,756) Share of profit of associate company ,870 1,870 Profit before tax 189, ,319 22,249 1, ,863 Taxation (57,982) (41,059) (7,715) - (106,756) Profit for the period 131, ,260 14,534 1, ,107 Other comprehensive income Actuarial gain arising from defined benefit obligation, net of tax Total comprehensive income for the period 131, ,260 14,534 1, ,107 For the three months ended 31 March 2017 Milling and Farming Poultry Breeding and Commercial Others Elimination/ adjustment Consolidated Sales to outsiders 3,520, ,809 7,966-3,833,597 Inter segment sales 222, ,337 28,475 (576,474) - Total revenue 3,743, ,146 36,441 (576,474) 3,833,597 Operating income 45, ,744 18, ,671 Finance income 32,369 25,343 5,839-63,551 Finance costs (6,624) 351 (11) - (6,284) Share of profit of associate company Profit before tax 71, ,438 24, ,938 Taxation (28,437) (32,261) (7,358) - (68,056) Profit for the period 42, ,177 17, ,882 Other comprehensive income Actuarial gain arising from defined benefit obligation, net of tax Total comprehensive income for the period 42, ,177 17, ,882 Ceylon Grain Elevators 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 54.54% 54.54% The number of shareholders representing the public holding 4,767 4,962 (03) List of 20 major shareholders based on their shareholding as at 31March2018 No. Name No of Shares Percentage 1 Prima Limited, Singapore 27,270, Employees Provident Fund 5,350, Supra Limited, Hong Kong 5,179, Eka Limited, Singapore 2,265, Laugfs Gas PLC 1,000, Mellon Bank N.A. -Commonwealth of Massachusetts 941, Bank of Ceylon No.1 Account 612, Mellon Bank N.A - Acadian Frontier Markets Equity Fund 523, J.B. Cocoshell (Pvt) Ltd 507, Commercial Bank of Ceylon PLC / Sithijaya Fund Limited 428, Timex Garments (Pvt) Ltd 400, E.W. Balasuriya& Co. (Pvt) Ltd 332, Seylan Bank PLC / S.R. Fernando 327, Mr. B.L. Jayaratne / Dr. Y.S. Liyanage 279, Deutsche Bank AG as Trustee to Astrue Alpha Fund 271, Seylan Bank PLC / C.N. Rajahmoney 267, Commercial Bank of Ceylon PLC A/C No , Mr. S.B.H. Wanduragala 194, Deutsche Bank AG as Trustee for Guardian Acquity Equity Fund 192, Ayenka Holdings Private Limited 188, Total 46,783, Ceylon Grain Elevators PLC 10

11 CORPORATE INFORMATION Company Name Ceylon Grain Elevators PLC Associate Company Prima Management Services (Private) Limited Company Registration No. Lawyers PQ 161 Varners Lanka Law office D.L. & F. De Saram Registered Office No.15, Rock House Lane, Colombo 15, Sri Lanka. Auditors Tel : +(94) (11) or 8 / / to KPMG, Colombo, Sri Lanka. Fax : +(94) (11) info.cge@prima.com.lk Company Secretary S S P Corporate Services (Private) Limited Stated Capital No. 101, Inner Flower Road, Colombo 3. Rs. 1,017,996,000 Bankers Number of Shares Hatton National Bank PLC 60,000,000 Ordinary Shares Nations Trust Bank PLC National Development Bank PLC Subsidiary Companies Sampath Bank PLC Three Acre Farms PLC Union Bank of Colombo PLC Millennium Multibreeder Farms (Private) Limited Bank of Ceylon Ceylon Pioneer Poultry Breeders Limited Commercial Bank of Ceylon PLC Ceylon Livestock and Agrobusiness Services (Private) Limited Axis Bank Limited Ceylon Warehouse Complex (Private) Limited DFCC Vardhana Bank PLC Ceylon Aquatech (Private) Limited Cargills Bank Limited Name of Directors Mr. Wickrema Senaka Weerasooria Mr. Cheng Chih Kwong, Primus Mr. Tan Beng Chuan Mr. Cheng Koh Chuen, Bernard Mr. Cheng Eng Loong 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. Cheng Eng Loong Mr. Sunil Karunanayake - 2,800 Shares Shares - Nil - Nil - Nil - Nil Ceylon Grain Elevators PLC 11