Ceylon Grain Elevators : Interim Financial Statements quarter ended 31st December 2021

CEYLON GRAIN ELEVATORS PLC

INTERIM FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

QUARTERLY REVIEW for the fourth quarter ended 31 December 2021

The Group's revenue for the fourth quarter of 2021 was Rs.4,902.5 Mn compared to Rs.5,532.3 Mn during the same quarter of 2020, representing a decrease of Rs.629.8 Mn or 11%. The Group's revenue for the year 2021 was Rs.24,055.5 Mn compared to Rs. 18,463.0 Mn during the year 2020, representing an increase of Rs.5,592.5 Mn or 30%.

The Group reported a total comprehensive income of Rs.1,098.4 Mn for the fourth quarter of 2021 compared to Rs.379.3 Mn during the same quarter of 2020, representing an increase of Rs.719.1 Mn or 190%. The Group reported a total comprehensive income of Rs.1,737.7 Mn for the year 2021 compared to Rs.1,240.9 Mn during the year 2020, representing an increase of Rs.496.8 Mn or 40%.

The Group's revenue for the quarter under review declined due to curtailed production caused by the

country's severe foreign exchange shortage for procurement of imported raw materials and the drop in local harvest. The Group's revenue growth for the year as compared to the previous year was mainly due to the price increases driven by soaring raw material prices during the year. The Group was able to increase its profitability for the quarter under review due to the retraction of Maximum Retail Price restriction on Chicken prices and optimisation of its product range. The improved profitability for the year was mainly due to selling price increase and the costing of imported raw materials at a fixed USD/LKR exchange rate prevailing in the market towards the end of 2021 and income tax concessions and exemption granted by the Inland Revenue (Amendment) Act No. 10 of 2021. As of the year-end,the Group has a significant amount of foreign currency outstanding trade debts due to foreign suppliers, on which any adverse fluctuations in the exchange rates would have a material impact on the Group's profits.

The Company and the Group have adhered to the Sri Lanka Financial Reporting Standards in the preparation of the interim financial statements for the year ended 31 December 2021.

There have been no other events subsequent to the interim period which require disclosure in the interim financial statements.

(Sgd.)Cheng Chih Kwong, Primus

Executive Director and Chief Executive Officer

(Sgd.)S S P Corporate Services (Private) Limited

Secretaries

Interim Financial Statements

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STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

All amounts in Sri Lankan Rupees thousands

	Group		Group	Company
For the three months ended 31 December.	2021		2020	Change	2021	2020
Revenue	4,902,450		5,532,312	(11%)	6,067,374	5,385,191
Cost of sales	(4,093,326)		(4,752,062)	(14%)	(5,274,800)	(4,872,700)
Gross profit	809,124		780,250	4%	792,574	512,491
Other operating (expenses) / income	(10,370)		(10,120)	2%	15,155	155,031
Selling and distribution expenses	(62,018)		(48,429)	28%	(59,331)	(46,986)
Administrative expenses	(99,161)		(73,077)	36%	(99,710)	(78,782)
Operating profit	637,575		648,624	(2%)	648,688	541,754
Interest income	104,846		74,485	41%	50,985	29,866
Net finance income / (costs)	145,452		(36,115)	NM	149,478	(33,061)
Share of profit of equity-accounted
investees, net of tax	12,071		14,580	(17%)	-	-
Profit before tax	899,944		701,574	28%	849,151	538,559
Taxation	168,454		(292,293)	NM	(107,614)	(168,147)
Profit for the period	1,068,398		409,281	161%	741,537	370,412
Other comprehensive income / (expenses)
for the period, net of tax	29,984		(29,973)	NM	22,701	(21,815)
Total comprehensive income for the period	1,098,382		379,308	190%	764,238	348,597
Profit attributable to :
Equity holders of the parent						370,412
935,628		338,928		741,537
Non-controlling interest			70,353			-
132,770			-
	1,068,398		409,281		741,537	370,412
Total comprehensive income attributable to :
Equity holders of the parent						348,597
962,590		312,354		764,238
Non-controlling interest	135,792		66,954		-	-
	1,098,382		379,308		764,238	348,597
Basic earnings per share (Rs.)	15.59		5.65		12.36	6.17

Interim Financial Statements

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STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

All amounts in Sri Lankan Rupees thousands

	Group	Group	Company
For the year ended 31 December ...	2021	2020	Change	2021	2020
Revenue	24,055,488	18,462,998	30%	24,992,021	17,932,753
Cost of sales	(21,851,650)	(16,360,364)	34%	(23,662,123)	(16,594,690)
Gross profit	2,203,838	2,102,634	5%	1,329,898	1,338,063
Other operating (expenses) / income	(95,428)	21,848	NM	276,130	254,740
Selling and distribution expenses	(234,355)	(230,754)	2%	(223,813)	(223,402)
Administrative expenses	(412,941)	(377,952)	9%	(394,301)	(362,761)
Operating profit	1,461,114	1,515,776	(4%)	987,914	1,006,640
Interest income	306,395	341,049	(10%)	128,482	112,604
Net finance costs	(122,866)	(179,081)	(31%)	(134,235)	(164,985)
Share of profit of equity-accounted
investees, net of tax	12,071	14,580	(17%)	-	-
Profit before tax	1,656,714	1,692,324	(2%)	982,161	954,259
Taxation	50,976	(421,450)	NM	(66,215)	(269,975)
Profit for the year	1,707,690	1,270,874	34%	915,946	684,284
Other comprehensive income / (expenses)
for the year, net of tax	29,984	(29,973)	NM	22,701	(21,815)
Total comprehensive income for the year	1,737,674	1,240,901	40%	938,647	662,469
Profit attributable to :
Equity holders of the parent					684,284
1,297,710	943,813		915,946
Non-controlling interest		327,061			-
409,980		-
	1,707,690	1,270,874		915,946	684,284
Total comprehensive income attributable to :
Equity holders of the parent					662,469
1,324,672	917,239		938,647
Non-controlling interest	413,002	323,662		-	-
	1,737,674	1,240,901		938,647	662,469
Basic earnings per share (Rs.)	21.63	15.73		15.27	11.40

Interim Financial Statements

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STATEMENT OF FINANCIAL POSITION

All amounts in Sri Lankan Rupees thousands

		Group		Company
As at		31.12.2021		31.12.2020			31.12.2021		31.12.2020
Assets
Non-current assets
Property, plant and equipment			2,573,866			1,012,850
	2,437,862				950,909
Improvements over leased land and buildings		135,122			135,122
	125,212				125,212
Right-of-use assets		678,096			565,626
	738,082				581,146
Intangible assets			32,330				32,330
	62,745				62,745
Investment in associate company			62,694				33
	74,765				33
Investment in subsidiary companies			-			301,625
	-				301,625
Biological assets		647,194				-
	540,229				-
Deferred tax assets			21,172				21,172
	26,010				26,010
Total non-current assets			4,150,474				2,068,758
	4,004,905				2,047,680
Current assets
Biological assets			23,264				-
	17,143				-
Inventories			3,624,211				3,470,538
	5,080,753				4,905,095
Trade and other receivables		629,787			540,586
	730,299				664,421
Amount due from related companies			7,411				42,028
	16,332				30,496
Current tax receivable			10,596				7,469
	-				-
Cash and cash equivalents			5,574,923				1,977,123
	9,493,679				5,066,674
Total current assets		15,338,206		9,870,192			10,666,686		6,037,744
Total assets		19,343,111		14,020,666			12,714,366		8,106,502
Equity and liabilities
Equity
Stated capital			1,017,996				1,017,996
	1,017,996				1,017,996
Retained earnings			6,555,874				3,523,538
	7,070,546				3,652,185
Total equity attributable to equity holders of the parent			7,573,870				4,541,534
	8,088,542				4,670,181
Non-controlling interest			2,055,639				-
	2,302,405				-
Total equity		10,390,947		9,629,509			4,670,181		4,541,534
Liabilities
Non-current liabilities
Deferred tax liabilities		245,578				-
	221,543				-
Employee benefits		173,583			138,040
	148,206				117,385
Lease liability		548,394			462,239
	684,268				548,902
Total non-current liabilities		1,054,017		967,555			666,287		600,279
Current liabilities
Trade and other payables			1,952,353				1,257,282
	2,048,925				1,342,364
Amount due to related companies			1,261,803				1,532,186
	5,641,696				5,862,477
Lease liability		209,446			175,221
	207,526				173,057
Total current liabilities			3,423,602				2,964,689
	7,898,147				7,377,898
Total liabilities			4,391,157				3,564,968
	8,952,164				8,044,185
Total equity and liabilities		19,343,111		14,020,666			12,714,366		8,106,502
Net asset per share (Rs.)		134.81		126.23			77.84		75.69
(Sgd.) Akram Ansar
Assistant General Manager - Finance
(Sgd.) Wickrema Senaka Weerasooria		(Sgd.) Cheng Chih Kwong, Primus
Non-Executive Independent Chairman		Executive Director and Chief Executive Officer

Interim Financial Statements

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