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Sri Lanka Three Acre March net up despite price cuts

May 11, 2011 (LBO) - Sri Lanka's Three Acre Farms said March 2011 quarter group net profit was 41 million rupees compared with just half-a-million rupees the year before although excess stocks forced it to cut prices.
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But there have been excess stocks in recent months after the government allowed chicken imports in the run up to the peak tourism season. The poultry firm, a unit of Ceylon Grain Elevators, also a listed company and part of Singapore's Prima Group, said sales rose 38 percent to 331 million rupees from the previous year.
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Basic earnings per share were 1.

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75 rupees in the quarter up from 02 cents the year before.

Three Acre Farms said in a stock exchange filing of interim results accumulated losses carried forward fell to 435 million rupees from 705 million rupees.

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"The breeder operation made profit during the period under review due to productivity improvement in the breeder farms and hatcheries," a statement said.


"However, when compared with the final quarter of 2010, the company was compelled to reduce the selling prices of Day-Old-Chicks due to the excess stocks in the market.




"

The poultry industry has been experiencing strong demand after the end of the island's ethnic war a

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