Aug 14, 2011 (LBO) – Sri Lanka’s Three Acre Farms, a poultry firm, which is part of the Ceylon Grain Elevators group said profits fell 88-percent to 3.0 million rupee in the June 2011 quarter from a year earlier, on rising costs and weaker chick prices. “The profit from broiler operation has reduced during the 2nd quarter of 2011 as compared to the same period of 2010, mainly due to the high cost of feed,” the firm told shareholders in an interim statement.
“The demand for broiler Day-Old-Chicks (DOC) has dropped during the period under review due to excess DOC in the market.
“The performance of breeder operation has however improved during the period under review.”
Bairaha Farms another poultry firm also reported lower profits.
Group revenues rose 13 percent to 304 million rupees, but costs rose 18 percent to 278 million rupees.
The firm reported earnings of 13 cents per share of the quarter. The stock closed up 1.20 at 127 rupees Friday despite the erosion of gross margins and profits.
The firm sells day-old-chicks and also broiler chicken. Rising maize prices however has eroded profits.
Sri Lanka’s maize prices go up when global prices are rise, but also rise due to domestic factors because imports are restrict