With a boost in meat consumption that is directly linked to higher income, the leading poultry producer Bairaha Farms PLC has posted a net profit of Rs.260 million for the September quarter, up 82 percent year-on-year (YoY), the interim financial accounts released to the Colombo bourse showed. The basic earnings per share improved to Rs.16.23 from Rs.8.96 YoY compared to a price of a share at Rs.193.
The group’s revenue increased 24 percent YoY to Rs.1.17 billion, while cost of sales went up 12.11 percent YoY to Rs.779.77 million. The poultry producers have been complaining about tight controls and delays in the importation of maize required to feed chicken to meet the growing consumer demand for poultry products, since local maize production is insufficient. Bairaha’s administrative expenses increased to Rs.49.59 billion, a 45.85 percent increase YoY. Shares of profits from joint venture companies increased to Rs.30.68 million, a sixfold YoY increase from Rs.4.70 million. Income tax ate up Rs.52.11 million into the profits, a 178.66 percent increase YoY. The group asset value increased to Rs.4.01 billion as opposed to Rs.3.67 billion at the start of the financial year, while total equity increased to Rs.2.96 billion from Rs.2.65 billion through retained earnings. For the first half of the year, Bairaha posted a net profit of Rs.378.55 million, an increase of 32 percent YoY. Revenue increased 13 percent YoY to Rs.2.12 billion and cost of sales increased 5 percent YoY to Rs.1.48 billion. As at September 30, 2016, M.N.M. Yakooth held 10.64 percent of the shares in the company, while M.N.M. Mubarak held 10.38 percent, M.N.M. Kamil 10.03 percent, M.N.M. Illyas 9.58 percent and the state-managed Employees’ Trust Fund 7.50 percent.