Ceylon Grain Elevators : Interim Financial Statements for the period ended 30th Sept-22

CEYLON GRAIN ELEVATORS PLC

INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2022

QUARTERLY REVIEW for the third quarter ended 30 September 2022

The Group's revenue for the third quarter of 2022 was Rs. 4,515.7 Mn compared to Rs.6,794.1 Mn during the same quarter of 2021, representing a decrease of Rs.2,278.4 Mn or 34%. The Group's revenue for the nine months of 2022 was Rs.14,743.3 Mn compared to Rs.19,153.0 Mn during the nine months of 2021, representing a decrease of Rs.4,409.7 Mn or 23%.

The Group reported a total comprehensive income of Rs. 1,512.0 Mn for the third quarter of 2022 compared to Rs.128.8 Mn during the same quarter of 2021, representing an increase of Rs.1,383.2 Mn. The Group reported a total comprehensive income of Rs.45.9 Mn for the nine months of 2022 compared to Rs.639.3 Mn during the nine months of 2021, representing a decrease of Rs.593.4 Mn or 93%.

The country is facing the worst economic crisis in its modern history where inflation soared over 70% and the LKR interest rates moved past 25% p.a.. The adverse macroeconomic conditions had a significant impact on households and all business segments including the poultry industries throughout the year to date. The prevailing shortages in USD to purchase raw materials as well as supply-chain constraints resulted in further curtailment of feed production during the third quarter. However, demand for chicken, Broiler and Layer Day Old Chicks saw some improvement towards the end of the reporting quarter due to the short supply of the products and higher prices for substitute products, and this contributed positively to the profitability. The Group expects its profitability in the fourth quarter will be affected by the cascading effects of the newly introduced Social Security Contribution Levy (SSCL), as well as the proposed increase in corporate income tax rates.

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 2022.

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

Interim Financial Statements

Ceylon Grain Elevators PLC | 2

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 ...		2022		2021	Change		2022		2021
Revenue		4,515,738		6,794,151	(34%)		6,036,680		6,832,533
Cost of sales		(2,683,720)		(6,280,476)	(57%)		(4,430,451)		(6,623,822)
Gross profit		1,832,018		513,675	257%		1,606,229		208,711
Other operating (expenses) / income		(36,589)		(79,992)	(54%)		50,197		9,913
Selling and distribution expenses		(60,892)		(57,161)	7%		(57,061)		(54,818)
Administrative expenses		(125,687)		(106,176)	18%		(115,823)		(100,917)
Operating profit		1,608,850		270,346	495%		1,483,542		62,889
Interest income		487,271		70,462	592%		357,308		28,030
Net finance costs		(273,561)		(162,580)	68%		(268,765)		(167,205)
Profit / (loss) before tax		1,822,560		178,228	923%		1,572,085		(76,286)
Taxation		(310,545)		(49,393)	529%		(279,402)		(36,505)
Profit / (loss) for the period		1,512,015		128,835	NM		1,292,683		(112,791)
Other comprehensive income for the period,
net of tax		-		-	-		-		-
Total comprehensive income / (expense) for the
	1,512,015		128,835	NM		1,292,683		(112,791)
period
Profit / (loss) attributable to :
Equity holders of the parent
	1,427,876		31,121			1,292,683		(112,791)
Non-controlling interest				97,714					-
	84,139				-
		1,512,015		128,835			1,292,683		(112,791)
Total comprehensive income / (expense)
attributable to :
Equity holders of the parent							(112,791)
	1,427,876		31,121			1,292,683
Non-controlling interest				97,714					-
	84,139				-
		1,512,015		128,835			1,292,683		(112,791)
Basic earnings / (loss) per share (Rs.)		23.80		0.52			21.54		(1.88)

Interim Financial Statements

Ceylon Grain Elevators PLC | 3

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 ...		2022		2021		Change		2022		2021
Revenue		14,743,481		19,153,038		(23%)		17,703,495		18,924,647
Cost of sales		(9,719,294)		(17,758,324)		(45%)		(13,440,214)		(18,387,323)
Gross profit		5,024,187		1,394,714		260%		4,263,281		537,324
Other operating (expenses) / income		(180,871)		(85,058)		113%		227,617		260,975
Selling and distribution expenses		(191,270)		(172,337)		11%		(180,070)		(164,482)
Administrative expenses		(374,319)		(313,780)		19%		(346,766)		(294,591)
Operating profit		4,277,727		823,539		419%		3,964,062		339,226
Interest income		985,904		201,549		389%		722,672		77,497
Net finance costs		(5,192,797)		(268,318)		NM		(5,175,759)		(283,713)
Profit / (loss) before tax		70,834		756,770		(91%)		(489,025)		133,010
Taxation		(24,956)		(117,478)		(79%)		44,516		41,399
Profit / (loss) for the period		45,878		639,292		(93%)		(444,509)		174,409
Other comprehensive income for the period,
net of tax		-		-		-		-		-
Total comprehensive income / (expense) for
	45,878		639,292		(93%)		(444,509)		174,409
the period
Profit / (loss) attributable to :
Equity holders of the parent
	(200,353)		362,082				(444,509)		174,409
Non-controlling interest				277,210						-
	246,231					-
		45,878		639,292				(444,509)		174,409
Total comprehensive income / (expense)
attributable to :
Equity holders of the parent								174,409
	(200,353)		362,082				(444,509)
Non-controlling interest				277,210						-
	246,231					-
		45,878		639,292				(444,509)		174,409
Basic (loss) / earnings per share (Rs.)		(3.34)		6.03				(7.41)		2.91

Interim Financial Statements

Ceylon Grain Elevators PLC | 4

STATEMENT OF FINANCIAL POSITION

All amounts in Sri Lankan Rupees thousands

		Group		Company
As at		30.09.2022		31.12.2021			30.09.2022		31.12.2021
Assets
Non-current assets
Property, plant and equipment		2,369,009		2,437,862			853,013		950,909
Improvements over leased land and buildings		118,719		125,212			118,719		125,212
Right-of-use assets		711,562		738,082			560,298		581,146
Intangible assets		62,410		62,745			62,410		62,745
Investment in associate company		74,765		74,765			33		33
Investment in subsidiary companies		-		-			301,625		301,625
Biological assets		481,470		540,229			-		-
Deferred tax assets		339,689		26,010			339,689		26,010
Total non-current assets		4,004,905
	4,157,624				2,235,787		2,047,680
Current assets
Biological assets		23,267		17,143			-		-
Inventories		5,866,591		5,080,753			5,225,174		4,905,095
Trade and other receivables		1,195,151		730,299			911,172		664,421
Amount due from related companies		29,991		16,332			30,232		30,496
Cash and cash equivalents		7,625,528		9,493,679			5,300,039		5,066,674
Total current assets		14,740,528		15,338,206			11,466,617		10,666,686
Total assets		18,898,152		19,343,111			13,702,404		12,714,366
Equity and liabilities
Equity
Stated capital		1,017,996		1,017,996			1,017,996		1,017,996
Retained earnings		6,510,193		7,070,546			2,847,676		3,652,185
Total equity attributable to equity holders of the parent		7,528,189		8,088,542			3,865,672		4,670,181
Non-controlling interest		2,447,887		2,302,405			-		-
Total equity		9,976,076		10,390,947			3,865,672		4,670,181
Liabilities
Non-current liabilities
Deferred tax liabilities		214,280		221,543			-		-
Employee benefits		171,451		148,206			138,629		117,385
Lease liabilities		833,545		684,268			701,651		548,902
Total non-current liabilities		1,219,276		1,054,017			840,280		666,287
Current liabilities
Trade and other payables		2,356,587		2,048,925			1,410,604		1,342,364
Amount due to related companies		5,027,899		5,641,696			7,302,935		5,862,477
Lease liabilities		318,314		207,526			282,913		173,057
Total current liabilities		7,702,800		7,898,147			8,996,452		7,377,898
Total liabilities		8,922,076		8,952,164			9,836,732		8,044,185
Total equity and liabilities		18,898,152		19,343,111			13,702,404		12,714,366
Net asset per share (Rs.)
	125.47		134.81			64.43		77.84

(Sgd.) K.A.R.S. Perera

General Manager

(Sgd.) Cheng Chih Kwong, Primus	(Sgd.) Chan Kong Meng, Lawrence
Executive Director and Chief Executive Officer	Executive Director and Group General Manager
	Interim Financial Statements
	Ceylon Grain Elevators PLC | 5