Sri Lanka Bairaha June net down 47-pct

Aug 10, 2011 (LBO) – Sri Lanka’s Bairaha Farms, a poultry group said net profits fell 47 percent to 55.1 million rupees in the June 2011 quarter with revenues down 01 percent to 565 million rupees. The firm reported earnings of 3.45 rupees per share for the quarter. Sri Lanka’s poultry stocks have been speculator favourites with the sector being driven up to high multiples.

The stock closed at 297 on Tuesday and fell 12 rupees in intra-day trading Wednesday.

Bairaha Farms interim accounts showed that cost of sales rose 13 percent to 452 million rupees, trimming gross profits 33 percent to 112 million rupees.

The poultry industry is volatile and subject to sudden state intervention.

Sri Lanka’s day-old-chick and poultry meat and egg prices rose last year amid shortages as the industry recovered amid state controls in retail prices and maize, the main raw material input.