At company level, Keells Food Products (KFP) remained profitable although at much lower levels, analysts said.
KFP had made a group net profit of 12 million rupees in the December quarter a year ago.
“The India operations continue to present many challenges and these are being addressed,” the firm said in a note accompanying the accounts filed with the stock exchange.
“Whilst the presence in India has been well established the volume growth has been slower than anticipated.”
KFP’s Sri Lanka operations made a profit of 57 million, lower than the year before.
But losses in its overseas business rose to 129 million rupees from a loss of nine million a year ago.Despite the loss, KFP had continued to make additional investments in its fully-owned overseas subsidiaries during nine-month period up to December 31, 2009.
The accounts showed it invested 116 million rupees in John Keells Foods India, set up to manufacture and market the firm’s range of processed meat products.
KFP is targeting India’s growing middle class – estimated in excess of 300 million people - and rising demand for convenience foods.
The firm also invested a million rupees in another subsidiary, Keells Food Products Mauritius, during the nine-month period.