RENUKA AGRI FOODS PLC INTERIM REPORT FOR THE PERIOD ENDED 31 st December 2017 CONTENTS: Operations Review-2 Statements of Income-3 Statements of Financial Position -4 Statements of Changes in Equity-5 Statements of Cash Flow-6 Segmental Report-7 Explanatory Notes-8-9 20 Top Shareholders- 9 Corporate Information-10
Operations Review Renuka Agri Foods PLC is pleased to present the Interim Financial Statements for the period ended 31 st December 2017. Our Performance Turnover and Profitability The group revenue for the period ended 31 st December 2017 was Rs 2,255 Mn (31 st December 2016 Rs 1,920 Mn). The profit attributable to the equity holders for the period ended 31 st December 2017 was Rs.70 Mn. (31st December 2016- Rs 258 Mn). The prevailing high coconut prices significantly increased the cost of raw materials, thereby eroding our Gross Profit percentage to single digits.the Manufacturing sector continued to be the main contributor to revenue for the period under review by achieving a turnover of Rs. 2,249 Mn while the Plantation sector recorded revenue of Rs 6 Mn for the period. Net Assets & Earnings Per Share The Group Net Asset Value per share recorded at Rs 4.85 as at 31 st December 2017 (31 st March 2017 Rs 4.86 ) and Earnings per Share stood at 0.12 cents per share for the period ended 31 st December 2017 ( 31 st December 2016 cents 0.46) Sgd. Shamindra Rajiyah Executive Director 29 th January 2018 Page 2 of 10
RENUKA AGRI FOODS PLC STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME CONSOLIDATED COMPANY Rs.'000' Rs.'000' Rs.'000' Rs.'000' QUARTER ENDED PERIOD ENDED QUARTER ENDED PERIOD ENDED 31.12.17 31.12.16 31.12.17 31.12.16 31.12.17 31.12.16 31.12.17 31.12.16 UNAUDITED UNAUDITED UNAUDITED UNAUDITED UNAUDITED UNAUDITED UNAUDITED UNAUDITED Revenue 682,772 659,130 2,255,382 1,919,924 677,109 652,284 2,243,433 1,904,753 Cost of Sales (661,225) (510,774) (1,969,252) (1,497,599) (652,962) (507,611) (1,958,431) (1,478,373) Gross Profit 21,547 148,356 286,130 422,325 24,147 144,673 285,002 426,380 Other Operating Income 4,561 2,681 18,635 30,108 4,498 2,959 16,764 40,064 Administration Expenses (50,110) (36,589) (150,544) (120,848) (38,736) (23,905) (119,741) (91,454) Selling and Distribution Expenses (31,260) (33,189) (75,569) (60,237) (31,261) (32,872) (75,569) (59,920) Profit / (Loss) from Operations (55,262) 81,259 78,652 271,348 (41,352) 90,855 106,456 315,070 Net Financing (Cost) / Income (7,121) (4,793) (10,818) 3,148 (9,253) (9,467) (17,389) (11,615) Share of Profit of Equity Accounted Investee 663 8,723 9,234 12,664 - - - - Profit / (Loss) before Taxation (61,721) 85,189 77,068 287,160 (50,605) 81,388 89,067 303,455 Taxation 5,000 (10,061) (9,396) (30,111) 5,000 (10,000) (8,480) (30,000) Profit / (Loss) for the Period (56,721) 75,128 67,672 257,049 (45,605) 71,388 80,587 273,455 Other Comprehensive Income - - - - - - - - Total Comprehensive Income / (Loss) for the Period (56,721) 75,128 67,672 257,049 (45,605) 71,388 80,587 273,455 Profit Attributable to : Owners of the Company (57,711) 74,589 69,541 257,893 (45,605) 71,388 80,587 273,455 Non Controlling Interest 990 539 (1,869) (844) - - - - Profit / (Loss) for the Period (56,721) 75,128 67,672 257,049 (45,605) 71,388 80,587 273,455 Total Comprehensive Income attributable to : Owners of the Company (57,711) 74,589 69,541 257,893 (45,605) 71,388 80,587 273,455 Non Controlling Interest 990 539 (1,869) (844) - - - - Total Comprehensive Income / (Loss) for the Period (56,721) 75,128 67,672 257,049 (45,605) 71,388 80,587 273,455 Earnings / (Loss) Per Share (0.10) 0.13 0.12 0.46 (0.08) 0.13 0.14 0.49 Page 3 of 10
STATEMENTS OF FINANCIAL POSITION RENUKA AGRI FOODS PLC CONSOLIDATED COMPANY AS AT 31.12.2017 31.03.2017 31.12.2017 31.03.2017 Rs.'000' Rs.'000' Rs.'000' Rs.'000' Unaudited Audited Unaudited Audited Assets Non-Current Assets Property, Plant and Equipment 1,333,281 1,251,817 963,616 982,507 Biological Assets 54,916 54,916 - - Intangible Assets 95 95 - - Immovable Estate Assets on Lease 44,000 44,000 - - Premium Paid Leasehold Premises 7,225 7,225 7,225 7,225 Investment In Subsidiaries - - 1,451,886 1,496,885 Investment In Equity Accounted Investees 647,117 637,883 - - Investment in Available for Sale Financial Assets 436,350 436,350 - - Deferred Tax Assets 6,101 5,915 - - 2,529,085 2,438,201 2,422,727 2,486,617 Current Assets Inventory 435,626 524,273 434,005 519,503 Trade and Other Receivables 221,133 311,275 206,793 304,246 Tax Recoverable 22,898 28,683 20,448 24,134 Amounts Due from Related Companies 137,865 19,617 141,944 19,617 Cash and Cash Equivalents 149,057 403,521 83,085 125,943 966,579 1,287,369 886,275 993,443 Total Assets 3,495,664 3,725,570 3,309,002 3,480,060 Equity and Liabilities Capital and Reserves Stated Capital 1,194,453 1,194,453 1,194,453 1,194,453 Revaluation Reserve 97,776 97,776 92,743 92,743 Accumulated Profits 1,434,763 1,440,185 1,381,123 1,367,946 Equity attributable to Parent Company's Shareholders 2,726,992 2,732,414 2,668,319 2,655,142 Non Controlling Interest 49,547 96,594 Total Equity 2,776,539 2,829,008 Non Current Liabilities Retirement Benefit Obligations 42,112 35,645 38,617 31,514 Loans and Borrowings 36,885 2,047 33,691 - Finance Lease Obligation 50,625 52,500 - - Deferred Tax Liability 96,081 95,174 90,604 89,978 225,703 185,366 162,912 121,492 Current Liabilities Loans and Borrowings 222,981 313,621 222,981 311,574 Finance Lease Obligation 2,500 2,500 - - Trade and Other Payables 183,146 248,606 174,302 244,431 Amounts Due to Related Companies 790 40,840 790 45,596 Dividend Payable 5,718 5,073 4,368 3,723 Income Tax Payable 37,621 34,300 37,152 34,300 Bank Overdraft 40,666 66,255 38,178 63,802 493,422 711,195 477,771 703,426 Total Liabilities 719,125 896,562 640,683 824,918 Total Equity & Liabilities 3,495,664 3,725,570 3,309,002 3,480,060 Net Assets per share 4.85 4.86 4.75 4.73 Notes: - - - - The above figures are subject to audit I certify that the Interim Financial Statements have been prepared in compliance with the requirements of the Companies Act No.7 of 2007. Sunanda Pieries CFO The Board of Directors is responsible for the preparation & presentation of these financial statements. Dr. S.R. Rajiyah Director 29.01.2018 S.V. Rajiyah Director Page 4 of 10
RENUKA AGRI FOODS PLC STATEMENTS OF CHANGES IN EQUITY For the Period ended Equity Attributable to Owners Non Controlling Stated Revaluation Retained Interest Total Capital Reserve Earnings RS.000 RS.000 RS.000 RS.000 RS.000 Company Balance as at 1st April 2016 1,194,453 92,743 1,102,767-2,389,963 Profit for the Period - - 273,455-273,455 Dividend Paid - - (64,195) - (64,195) Balance as at 31st December 2016 1,194,453 92,743 1,312,027-2,599,223 Balance as at 1st April 2017 1,194,453 92,743 1,367,946-2,655,142 Profit for the Period - - 80,587-80,587 Dividend Paid - - (67,410) - (67,410) Balance as at 31st December 2017 1,194,453 92,743 1,381,123-2,668,319 Group Balance as at 1st April 2016 1,194,453 97,770 1,188,009 43,395 2,523,627 Profit for the Period - - 257,893 (844) 257,049 Dividend Paid - - (64,195) (178) (64,373) Changes in ownership interest that do not result - - (7) 7 - in loss of control Balance as at 31st December 2016 1,194,453 97,770 1,381,700 42,380 2,716,303 Balance as at 1st April 2017 1,194,453 97,776 1,440,185 96,594 2,829,008 Profit for the Period - - 69,541 (1,869) 67,672 Dividend Paid - - (67,410) - (67,410) Acquisition of Subsidiary - - - (231) (231) Changes in ownership interest that do not result - - (7,553) (44,947) (52,500) in loss of control Balance as at 31st December 2017 1,194,453 97,776 1,434,763 49,547 2,776,539 Page 5 of 10
RENUKA AGRI FOODS PLC STATEMENT OF CASH FLOWS GROUP COMPANY FOR THE PERIOD ENDED 31ST DECEMBER 2017 2016 2017 2016 Rs.'000 Rs.'000 Rs.'000 Rs.'000 UNAUDITED UNAUDITED UNAUDITED UNAUDITED Cash Flow from Operating Activities Profit/(Loss) Before Tax 77,068 287,160 89,067 303,455 Adjustments for Depreciation 77,248 77,132 69,532 72,311 Amortization of Intangible asset - 15,852-194 Share of Profit of Equity Accounted Investee (9,234) (12,664) - - Provision for Retirement Benefit Obligation 7,424 4,453 7,500 4,208 Finance Income (7,226) (3,148) (569) 11,615 Finance Expense 11,759 11,673 Operating Profit Before Working Capital Changes 157,039 368,785 177,203 391,783 Working Capital Changes (Increase)/Decrease in Inventories 88,647 34,195 85,498 26,639 (Increase)/Decrease in Trade and Other Receivables 95,741 (102,368) 101,139 (98,301) (Increase)/Decrease in Dues from Related Parties (118,248) (45,706) (122,327) (44,439) Increase/(Decrease) in Trade and Other Payables (68,182) 61,074 (73,620) 65,061 Increase/(Decrease) in Dues to Related Parties (40,050) (2,545) (44,806) (1,317) Cash Generated from Operations 114,947 313,435 123,087 339,426 Interest Paid (11,759) (13,705) (11,673) (13,143) Tax Paid (1,801) (6,310) (866) (6,260) Payment of Retirement Benefit Obligation (957) (491) (397) (339) Net Cash Flows Generated from /(Used in) Operating Activities 100,430 292,929 110,151 319,684 Cash Flows from Investing Activities Acquisition of Property, Plant and Equipment (158,712) (189,695) (50,641) (47,563) (Investment)/ Maturity in Unit Trust/Short Term Investment - 167,411 - - (Acquisition) / Disposal of Investments (52,731) - 44,999 (174,529) Interest Received 7,226 16,853 569 1,528 Net Cash (Generated from) / Used in Investing Activities (204,218) (5,434) (5,073) (220,564) Cash Flows from Financing Activities Loans and Borrowings paid during the period (55,802) (2,295) (54,902) (19,253) Repayment of Lease Obligations (1,875) (21,300) - - Dividend Paid (67,410) (64,373) (67,410) (64,195) Net Cash Flows Generated From/(Used) in Financing Activities (125,087) (87,968) (122,312) (83,448) Net Increase/ (Decrease) in Cash and Cash Equivalents (228,875) 199,527 (17,234) 15,672 Cash and Cash Equivalents at the beginning of the Period 337,266 123,841 62,141 37,864 Cash and Cash Equivalents at the End of the Period 108,391 323,368 44,907 53,536 Page 6 of 10
RENUKA AGRI FOODS PLC SEGMENT INFORMATION Rs.000 MANUFACTURING PLANTATION GROUP TOTAL For the Period Ended 31st December 2017 2016 2017 2016 2017 2016 Revenue 2,248,833 1,908,353 33,074 39,178 2,281,907 1,947,531 Intra Group - - (26,525) (27,607) (26,525) (27,607) Segment Revenue 2,248,833 1,908,353 6,549 11,571 2,255,382 1,919,924 Segment Profit from Operations 108,982 294,374 (30,330) (23,026) 78,652 271,348 Share of Profit of Equity Accounted Investee 9,234 12,664 - - 9,234 12,664 Segment Net Finance Income / (Cost) (15,734) (10,369) 4,916 13,517 (10,818) 3,148 Profit for the Year 93,916 266,619 (26,244) (9,570) 67,672 257,049 TOTAL ASSETS 3,057,545 2,915,272 438,119 477,638 3,495,664 3,392,910 TOTAL LIABILITIES 644,007 604,312 75,118 72,296 719,125 676,608 Note: 1 The above figures are subject to audit. 2 Figures in brackets indicates deductions Page 7 of 10
Explanatory notes 1. Basis of preparation The interim financial statements of Renuka Agri Foods PLC have been prepared in compliance with Sri Lanka Accounting Standard LKAS 34 -Interim Financial Reporting. These interim financial statements are to be read in conjunction with the annual financial statements for the year ended 31st March 2017. 2. Comparative figures The presentation and classification of figures for the corresponding period of the previous year have been rearranged where relevant, to be comparable with those for the current period. For management purposes, the group is organized in to business units based on their products and services, and performance reported under two segments (i.e. Manufacturing and Plantation) during the year under review. 3. Stated Capital The stated capital of the company consists of 561,750,000 shares issued as at 31 st December 2017. 4. Contingent liabilities There is no change in the nature of the contingent liabilities as at 31 st December 2017 as compared to the contingent liabilities which were disclosed in the accounts for the year ended 31st March 2017. 5. Market price per share Market prices for the quarter ended 31 st December were: 2017 2016 Lowest 2.40 2.80 Highest 3.10 3.50 Last traded 2.60 2.90 6. Public shareholding The percentage of shares held by the public as at 31 st December 2017 amounts to 28.02 % (31st March 2017 28.01%) of the stated capital. The number of shareholders representing the public holding was 3,705 as at 31 December 2017. (31 st March 2017 3713) 7. Directors shareholding The directors shareholdings are as follows: Directors Name As at 30th September 2017 As at 30th June 2017 Dr. S.R. Rajiyah - - Mrs. I.R. Rajiyah - - Dr. S.R. Rajiyah (Jointly with Mrs I R Rajiyah ) 28,090,337 28,090,337 Mr. S.V. Rajiyah 2,054,984 2,054,984 Mr. S. Vasanthakumara (Mr. V. Sanmugam) 1,010 1,010 Ms. A.L. Rajiyah 1,219,483 1,219,483 Mr. S. Nagarajah - - Mr. M. Terfloth - - Mr. D.S. Arangala - - Mr. K. Liyanagamage - - Total 31,365,814 31,365,814 Page 8 of 10
8. Significant Events and Transactions There were no significant events and transactions that have taken place during the period which require disclosure or adjustments to the financial statements. 9. Post Balance Sheet Events There are no material events that have taken place subsequent to 31 st December 2017 which require disclosures or adjustments to the financial statements.. 10. Earnings per share Earnings per share have been calculated by dividing profit attributable to ordinary equity holders by the number of ordinary shares as given in the LKAS 33. RENUKA AGRI FOODS PLC - TOP 20 MAJOR SHAREHOLDERS No Name Voting as at 31.12.2017 Voting as at 30.09.2017 No of Shares % No of Shares % 1 RENUKA FOODS PLC 337,034,943 60.00% 337,034,943 60.00% 2 GREVEN HOLDINGS LTD 34,735,743 6.18% 34,735,743 6.18% 3 DR.S R RAJIYAH & MRS I R RAJIYAH (JT) 28,090,337 5.00% 28,090,337 5.00% 4 MRS. A T T T ALNAKIB 14,855,280 2.64% 14,855,280 2.64% 5 DEUTSCHE BANK AG AS TRUSTEE FOR NAMAL ACUITY VALUE FUND 8,220,240 1.46% 8,220,240 1.46% 6 INSITE HOLDINGS (PVT) LTD 7,000,000 1.25% 7,000,000 1.25% 6 MR W DUNSFORD 7,000,000 1.25% 7,000,000 1.25% 8 MR. H A PIERIS 5,103,454 0.91% 5,103,454 0.91% 9 PEOPLES BANK -TREASURY 4,557,361 0.81% 4,557,361 0.81% 10 MR K C VIGNARAJAH 4,220,385 0.75% 4,220,385 0.75% 11 DISTILLERIES COMPANY OF SRI LANKA PLC A/C NO. 02 3,668,560 0.65% 3,668,560 0.65% 12 MR. I RAHEEL & MR A RAHEEL (JT) 3,479,500 0.62% 3,479,500 0.62% 13 MR.H A A H ALGHARABALLY 3,168,237 0.56% 3,168,237 0.56% 14 J.B. COCOSHELL (PVT) LTD 3,035,562 0.54% 3,035,562 0.54% 15 STANDARD CHARTERED BANK SINGAPORE S/A HL BANK SINGAPORE BRANCH 3,000,000 0.53% 3,000,000 0.53% 16 Mr R GAUTAM 2,187,944 0.39% 1,997,025 0.36% 17 MR. A M T T ALGHANIM & MRS A T T T ALNAQUIB (JT) 2,078,000 0.37% 2,078,000 0.37% 18 MR. S V RAJIYAH 2,054,984 0.37% 2,054,984 0.37% 19 MR. N PERERA 2,025,105 0.36% 2,025,105 0.36% 20 MRS S.E FERNANDO & MR K K R FERNANDO 1,900,000 0.34% 1,900,000 0.34% 477,415,635 84.98% 477,224,716 84.95% Page 9 of 10
CORPORATE INFORMATION Name of Company Renuka Agri Foods PLC Legal Form Quoted Public Company with Limited Liability Principal Activity Agri Business Subsidiaries Renuka Organics (Pvt) Ltd Kandy Plantations Ltd Ceylon Forestry (Pvt) Ltd Ceylon Botanicals (Pvt) Ltd Coco Lanka (Pvt) Ltd Coco Serendib (Pvt) Ltd Matale Valley Plantations Ltd Board of Directors Dr. S.R.Rajiyah-Chairman Mrs I.R.Rajiyah Mr S.V.Rajiyah Mr M.Terfloth Mr V. Sanmugam Mrs A.L.Rajiyah Mr S. Nagarajah Mr. D. S. Arangala Mr. K. Liyanagamage Audit Committee Mr S. Nagarajah - Chairman Mr. D. S. Arangala Mr. K. Liyanagamage Related Party Transaction Review Committee (Represented by ultimate parent company) Mr. T.K.Bandaranayake-Chairman Mr J.M.Swaminathan Mr M.S.Dominic Remuneration Committee (Represented by ultimate parent company) Mr M.S.Dominic - Chairman Mr. T.K.Bandaranayake Mr. L.M.Abeywickrama Company Secretaries Renuka Enterprises (Pvt) Ltd 69 Sri Jinaratana Road, Colombo 2 Registrars S S P Corporate Services (Pvt) Ltd 546 Galle Road, Colombo 3 Parent Company Renuka Foods PLC Registration No. PB 1108/PQ Registered Office Renuka House 69 Sri Jinaratana Road, Colombo 2 Telephone: 00941-11-2314750-5 Email: info@renukagroup.com Fax: 00941 11-2445549 Postal Address P.O.Box 961, Colombo Stock Exchange Listing Colombo Stock Exchange External Auditors KPMG Chartered Accountants Internal Auditors Price Waterhouse Coopers ( PWC) Legal Consultants Nithya Partners Attorneys- at-law Bankers Commercial Bank of Ceylon PLC DFCC Bank PLC Hatton National Bank PLC Hong Kong & Shanghai Banking Corporation Ltd National Development Bank PLC Standard Chartered Bank Page 10 of 10