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Tuesday, August 16, 2011

Perpetual exits from chicken stocks

By Jithendra Antonio

Arjun Aloysius led Perpetual Asset management and Perpetual Capital have slowly shed their stakes in Ceylon Grain Elevators PLC (GRAN) and Three Acre Farms PLC (TAFL), the latest financials outline.

Accordingly, the latest financials as at June 30 point out that Perpetual Capital that had 556,800 or 2.36% of TAFL being the fourth largest shareholder had reduced its stake to 0.24% or 55,900 shares as at end of June this year. Subsequently perpetual Asset Management that had 456,600 or 0.76% stake of GRAN had reduced its stake to 0.59% or 351,100 shares as at end of June.

Meanwhile the financials of Three Acre Farms outlines that group net turnover for the second quarter 2011 was Rs.304.7million as compared to Rs.269.7 million during the same quarter of 2010, an increase of Rs.35million or 13%. Group net turnover for the 1st half of 2011 is Rs.636.2 million as compared to Rs.510.2 million during the 1st half of 2010, an increase of Rs.126 million or 25%.

Group has reported a net profit of Rs.3 million for the 2nd quarter 2011 as compared to the net profit of Rs.24.6 million reported in the 2ndquarter 2010. The group has reported a net profit of Rs.44.3millio for the 1st half of 2011 as compared to net profit of Rs.25.1 million reported in the 1st half of 2010.

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 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.

Meanwhile Grain Elevators financials reveal that when compared with the 1st half of 2010, the cost of production has increased by 32% during the period under review mainly due to the higher cost of raw materials. “The production of local Maize was badly affected with the unfavorable weather conditions during the last few months.” It notes adding that as the government restriction on import of maize continued, the company was compelled to buy the local maize at higher price

source - www.dailymirror.lk