Grain Elevators 4Q net edges down; full-year profit up

Sri Lanka’s largest listed poultry producer, Ceylon Grain Elevators PLC (GRAN), has posted a net profit of Rs.369.12 million for the quarter ended December 31, 2016 (4Q16), down from Rs.387.94 million year-on-year (YoY), despite the period being the festive season.
The basic earnings per share fell to Rs.6.15 from Rs.6.47 YoY. GRAN shares closed trading at Rs.79.00 yesterday.
Revenue for 4Q16 fell 3 percent YoY to Rs.3.70 billion, despite analysts projecting that the supply won’t be able to meet demand in the poultry sector, while cost of sales fell 2 percent YoY to Rs.3.15 billion.
The administrative expenses increased 56 percent YoY to Rs.71.45 million, while the tax expenses fell 95 percent YoY to Rs.3.55 million.
The company’s asset base increased to Rs.8.45 billion from Rs.6.98 billion at the start of 1Q16, with the increase coming mainly through cash and cash equivalents through retained earnings.
The net asset per share increased to Rs.83.66 in 4Q16 from Rs.63.24 YoY.

GRAN this month announced that it has entered into a Rs.272 million agreement to acquire land and poultry processing facilities from a related party.
For the entire year of 2016, GRAN posted a net profit of Rs.1.29 billion, up from Rs.943.07 million YoY, with revenue increasing 6 percent YoY to Rs.14.52 billion and cost of sales increasing 2 percent YoY to Rs.12.21 billion.
The milling and farming segment contributed most towards profits during the year, with Rs.815.73 million in profits after tax, while the poultry breeding and commercial segment posted Rs.758.09 million in profits after tax.
Milling and farming brought in the highest revenue with Rs.14.01 billion, while poultry breeding and commercial operations contributed with Rs.2.55 billion.
Prima Limited, Singapore owns 45.45 percent of the shares in GRAN, while the Employees’ Provident Fund owns 8.92 percent of the shares, Supra Limited, Hong Kong owns 8.63 percent and Eka Limited, Singapore owns 3.78 percent.