Ceylon Grain Elevators : Interim Financial statments for the six months ended 30th June 2022

CEYLON GRAIN ELEVATORS PLC

INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2022

QUARTERLY REVIEW for the second quarter ended 30 June 2022

The Group's revenue for the second quarter of 2022 was Rs.4,543.6 Mn compared to Rs.6,106.8 Mn during the same quarter of 2021, representing a decrease of Rs.1,563.2 Mn or 26%. The Group's revenue for the first half of 2022 was Rs.10,227.7 Mn compared to Rs.12,358.9 Mn during the first half of 2021, representing a decrease of Rs.2,131.2 Mn or 17%.

The Group reported a loss of Rs.221.6 Mn for the second quarter of 2022 compared to a profit of Rs. 136.8 Mn during the same quarter of 2021. The Group reported a loss of Rs.1,466.1 Mn for the first half of 2022 compared to a profit of Rs. 510.5 Mn during the first half of 2021.

The Group's revenue and profitability have been adversely affected during the period under review mainly due to the detrimental effects of the foreign exchange crisis and the significant depreciation of LKR against the USD. This caused the Group to incur significant foreign exchange losses as it was not able to get USD timely to pay its overseas suppliers. Feed production had to be curtailed due to the unavailability and rising costs of imported and local raw materials. Demand for processed chicken and table eggs plummeted as a result of sharp increases in inflation (and VAT) that severely deteriorated the purchasing power of consumers, whilst entire distribution channels were disrupted due to severe fuel shortages. These combined effects adversely affected the Group's performance.

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 June 2022.

There have been no other events subsequent to the interim period which require disclosure in the interim financial statements.

(Sgd.) Wickrema Senaka Weerasooria

Non-Executive Independent Chairman

(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 June ...		2022			2021	Change		2022		2021
Revenue		4,543,639			6,106,785	(26%)		5,444,549		6,026,917
Cost of sales		(2,825,147)			(5,883,968)	(52%)		(3,924,763)		(6,044,333)
Gross profit / (loss)		1,718,492			222,817	671%		1,519,786		(17,416)
Other operating (expenses) / income		(17,982)			(8,694)	107%		16,959		90,691
Selling and distribution expenses		(62,277)			(52,840)	18%		(58,356)		(49,229)
Administrative expenses		(127,330)			(97,715)	30%		(118,877)		(90,583)
Operating profit / (loss)		1,510,903			63,568	NM		1,359,512		(66,537)
Interest income		314,327			58,475	438%		259,035		18,369
Net finance costs		(2,069,726)			(28,622)	NM		(2,061,363)		(28,141)
(Loss) / profit before tax		(244,496)			93,421	NM		(442,816)		(76,309)
Taxation		22,907			43,376	(47%)		38,900		137,483
(Loss) / profit for the period		(221,589)			136,797	NM		(403,916)		61,174
Other comprehensive income for the period,
net of tax		-			-	-		-		-
Total comprehensive (expense) / income for
	(221,589)			136,797	NM		(403,916)		61,174
the period
(Loss) / profit attributable to :
Equity holders of the parent		(293,509)			82,422			(403,916)		61,174
Non-controlling interest					54,375					-
	71,920					-
		(221,589)			136,797			(403,916)		61,174
Total comprehensive (expense) / income
attributable to :
Equity holders of the parent								61,174
	(293,509)			82,422			(403,916)
Non-controlling interest					54,375					-
	71,920					-
		(221,589)			136,797			(403,916)		61,174
Basic (loss) / earnings per share (Rs.)		(4.89)			1.37			(6.73)		1.02

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 six months ended 30 June ...		2022		2021		Change		2022		2021
Revenue		10,227,743		12,358,887		(17%)		11,666,815		12,092,114
Cost of sales		(7,035,574)		(11,477,848)		(39%)		(9,009,763)		(11,763,501)
Gross profit		3,192,169		881,039		262%		2,657,052		328,613
Other operating (expenses) / income		(144,282)		(5,066)		NM		177,420		251,062
Selling and distribution expenses		(130,378)		(115,176)		13%		(123,009)		(109,664)
Administrative expenses		(248,632)		(207,604)		20%		(230,943)		(193,674)
Operating profit		2,668,877		553,193		382%		2,480,520		276,337
Interest income		498,633		131,087		280%		365,364		49,467
Net finance costs		(4,919,236)		(105,738)		NM		(4,906,994)		(116,508)
(Loss) / profit before tax		(1,751,726)		578,542		NM		(2,061,110)		209,296
Taxation		285,589		(68,085)		NM		323,918		77,904
(Loss) / profit for the period		(1,466,137)		510,457		NM		(1,737,192)		287,200
Other comprehensive income for the period,
net of tax		-		-		-		-		-
Total comprehensive (expense) / income for
	(1,466,137)		510,457		NM		(1,737,192)		287,200
the period
(Loss) / profit attributable to :
Equity holders of the parent
	(1,628,229)		330,961				(1,737,192)		287,200
Non-controlling interest				179,496						-
	162,092					-
		(1,466,137)		510,457				(1,737,192)		287,200
Total comprehensive (expense) / income
attributable to :
Equity holders of the parent								287,200
	(1,628,229)		330,961				(1,737,192)
Non-controlling interest				179,496						-
	162,092					-
		(1,466,137)		510,457				(1,737,192)		287,200
Basic (loss) / earnings per share (Rs.)		(27.14)		5.52				(28.95)		4.79

Interim Financial Statements

Ceylon Grain Elevators PLC | 4

STATEMENT OF FINANCIAL POSITION

All amounts in Sri Lankan Rupees thousands

		Group		Company
As at		30.06.2022		31.12.2021			30.06.2022		31.12.2021
Assets
Non-current assets
Property, plant and equipment		2,411,163		2,437,862			881,983		950,909
Improvements over leased land and buildings		120,883		125,212			120,883		125,212
Right-of-use assets		720,403		738,082			567,248		581,146
Intangible assets		62,870		62,745			62,870		62,745
Investment in associate company		74,765		74,765			33		33
Investment in subsidiary companies		-		-			301,625		301,625
Biological assets		469,831		540,229			-		-
Deferred tax assets		847,873		26,010			847,873		26,010
Total non-current assets		4,004,905
	4,707,788				2,782,515		2,047,680
Current assets
Biological assets		36,103		17,143			-		-
Inventories		5,614,574		5,080,753			5,127,526		4,905,095
Trade and other receivables		890,352		730,299			766,906		664,421
Amount due from related companies		41,797		16,332			38,920		30,496
Cash and cash equivalents		9,583,204		9,493,679			7,075,999		5,066,674
Total current assets		16,166,030		15,338,206			13,009,351		10,666,686
Total assets		20,873,818		19,343,111			15,791,866		12,714,366
Equity and liabilities
Equity
Stated capital		1,017,996		1,017,996			1,017,996		1,017,996
Retained earnings		5,082,317		7,070,546			1,554,993		3,652,185
Total equity attributable to equity holders of the parent		6,100,313		8,088,542			2,572,989		4,670,181
Non-controlling interest		2,363,748		2,302,405			-		-
Total equity		8,464,061		10,390,947			2,572,989		4,670,181
Liabilities
Non-current liabilities
Deferred tax liabilities		220,567		221,543			-		-
Employee benefits		163,938		148,206			131,488		117,385
Lease liabilities		930,152		684,268			786,804		548,902
Total non-current liabilities		1,314,657		1,054,017			918,292		666,287
Current liabilities
Trade and other payables		2,135,665		2,048,925			1,327,470		1,342,364
Amount due to related companies		8,707,204		5,641,696			10,756,387		5,862,477
Lease liabilities		252,231		207,526			216,728		173,057
Total current liabilities		11,095,100		7,898,147			12,300,585		7,377,898
Total liabilities		12,409,757		8,952,164			13,218,877		8,044,185
Total equity and liabilities		20,873,818		19,343,111			15,791,866		12,714,366
Net asset per share (Rs.)
	101.67		134.81			42.88		77.84

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

General Manager

(Sgd.) Wickrema Senaka Weerasooria	(Sgd.) Dr. Prathap Ramanujam
Non-Executive Independent Chairman	Non-Executive Independent Director
	Interim Financial Statements
	Ceylon Grain Elevators PLC | 5