HVA Foods : Interim Financial Statements as at 31-03-2022

H VA FO O DS P LC

Annual Report 2020/21

H V A Foods PLC

PROVISIONAL FINANCIAL STATEMENTS

FOR TH E TWELVE MONTHS ENDED

H V A Foods31STPLCMARCH| Annual2 0 2Report2 2020/21

A

Chairman's Review

Dear Shareholders,

HVA Foods PLC continued its recovery momentum during the quarter under review despite the global challenges and the economic, social, and political unrests in the country, which hampered business activities in key markets along with operational activities of the company. As stated in my previous review, the new management is making every endeavor to achieve sustainable and profitable growth whilst addressing the current constraints.

Despite the challenges the Company recorded a revenue of LKR 1.26 billion for the 12 months ended 31st March 2022, which was a 8% growth compared to FY 21/22. In terms of profitability, the company recorded a gross profit of LKR 46Mn with eroding GP margins for the period under review. The exponential increase in freight rates combined with a conscious strategic decision taken to absorb some of the exponential increases in tea and packaging costs to key customers, with a long term view of building on the companies' presence in key markets weighed down the GP margins.

Although the net profit further eroded during the 4th quarter of FY 21/22, the company is well poised to arrest the decline in the coming quarters. With the announcement of the rights issue in November 2021 and the successful completion of the same in April 2022, the management is confident of addressing the equity position of the company.

I would like to conclude by reassuring our stakeholders that the company with its flagship brand "Heladiv" registered in over 40 countries, is exploring all avenues to achieve a sustainable growth in the months ahead even amidst these challenging times.

B. S. M De Silva

Chairman

06th June 2022

HVA FOODS PLC

Statement of Comprehensive Income

Provisional Financial Statements for the Twelve months ended 31st March 2022 All amounts in Sri Lanka Rupees

Revenue

Cost of sales

Gross profit / (loss)

Other operating income

Distribution expenses

Administration expenses

Reversal of impairment provision on related parties

Results from operating activities

Net finance costs

Profit / (Loss) before income tax

Income tax expense

Profit / (Loss) for the Period

Other Comprehensive Income

Actuarial gain/(Loss) on retirement benefit obligation Revaluation gain of Property, Plant and Equipments Tax on other comprehensive income

Total Comprehensive Income / (Expense) for the Year

Basic / Diluted earnings per share

Figures in brackets indicate deductions.

			Group								Company
	12 Months to		3 Months from 1st Jan to	Year ended		12Months to		3Months from 1st Jan to	Year ended
31.03.2022	31.03.2022	31.03.2021		31.03.2021		31.03.2022	31.03.2022	31.03.2021		31.03.2021
	(unaudited)		(unaudited)	(unaudited)	(audited)		(unaudited)		(unaudited)	(unaudited)	(audited)
1,261,234,481	236,186,441	244,216,926		1,164,440,585		1,261,234,481	236,186,441	244,216,926		1,164,440,585
(1,215,204,908)	(262,370,511)	(207,851,091)	(1,032,347,737)		(1,215,204,908)	(262,370,511)	(207,851,091)	(1,032,347,737)
46,029,573	(26,184,070)	36,365,835		132,092,848		46,029,573	(26,184,070)	36,365,835		132,092,848
94,166,619	36,637,631	(6,124,951)	6,274,176		94,166,619	36,637,631	(6,124,951)	6,193,976
(15,507,479)	50,111,161	(10,353,469)	(20,979,965)		(15,507,479)	50,111,161	(10,353,469)	(20,979,965)
(314,367,151)	(213,222,623)	41,799,833		(275,596,387)		(314,196,511)	(213,051,983)	41,814,033		(275,547,187)
-			-		322,813,036		-	-	-		322,813,036
(189,678,438)	(152,657,901)	61,687,248		164,603,708		(189,507,798)	(152,487,261)	61,701,448		164,572,708
(56,656,541)	26,406,053	(47,246,219)	(91,282,659)		(56,656,541)	26,406,053	(47,246,219)	(91,279,059)
(246,334,979)	(126,251,848)	14,441,029		73,321,049		(246,164,339)	(126,081,208)	14,455,229		73,293,649
-	-	-		5,269,058		-	-	-		5,269,058
(246,334,979)	(126,251,848)	14,441,029		78,590,107		(246,164,339)	(126,081,208)	14,455,229		78,562,707
52,698	52,698	-		84,912		52,698	52,698	-		84,912
-	-	-		-		-	-	-		-
(7,378)	(7,378)	-		(11,888)		(7,378)	(7,378)	-		(11,888)
(246,289,659)	(126,206,528)	14,441,029		78,663,131		(246,119,019)	(126,035,888)	14,455,229		78,635,731
(3.71)	(1.90)	0.22		1.18		(3.71)	(1.90)	0.22		1.18

Note: Distribution expenses for the 3 months ended 31st March 2022 was Rs. 5,325,510. However ,there was a reclassification of a debtor write- off from Distribution Expense to Administration Expenses resulting in the postive figure as reported.

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HVA FOODS PLC

Statement of Financial Position

Provisional Financial Statements for the Twelve months ended 31st March 2022

All amounts in Sri Lanka Rupees

Group

Company

As at

ASSETS

Non-current assets

Property, plant & equipment

Goodwill

Investment in subsidiary

Intangible assets

Deferred tax assets

Total non-current assets

Current assets

Inventories

Financial investments

Trade & Other receivables

Amounts due from related parties

Pre-payments & other recoverable

Deposits & advances receivables

Cash & cash equivalents

Total current assets

Non-current assets classified as held for sale

Total assets

Equity and liabilities

Stated capital

Revaluation reserve

Retained earnings

Total equity attributable to the equity holders of the company / Total equity

Non-current liabilities

Employee benefits

Interest-bearing loans and borrowings

Government grant

Total non-current liabilities

Current liabilities

Trade payables

Interest-bearing loans and borrowings

Government grant

Amounts due to related parties

Income tax payables

Deposits & advances payables

Accrued expenses & other creditors

Bank overdrafts

Total current liabilities

Total liabilities

Total equity & liabilities

31.03.2022	31.03.2021	31.03.2022	31.03.2021
(unaudited)	(audited)	(unaudited)	(audited)
44,975,354	50,190,533	44,975,354	50,190,533
263,849,498	263,849,498	263,849,498	263,849,498
-	-	45,000,001	45,000,001
52,431,060	52,181,337	7,492,063	7,242,340
14,768,986	14,776,364	14,768,986	14,776,364
376,024,898	380,997,732	376,085,902	381,058,736
166,504,059	154,793,112	166,504,059	154,793,112
1,887,938	2,236,894	1,887,938	2,236,894
255,817,337	227,770,025	255,817,337	227,770,025
32,265,859	136,716	32,495,259	213,516
43,952,028	7,730,104	43,952,028	7,730,104
165,232,923	69,744,343	165,232,923	69,744,343
125,566,974	150,829,209	125,556,669	150,818,904
791,227,118	613,240,403	791,446,213	613,306,898
-	291,537,524	-	291,537,524
1,167,252,017	1,285,775,659	1,167,532,115	1,285,903,158
333,857,588	333,857,588	333,857,588	333,857,588
16,701,071	237,613,039	16,701,071	237,613,039
(581,069,673)	(555,691,982)	(580,755,134)	(555,548,083)
(230,511,014)	15,778,645	(230,196,475)	15,922,544
7,113,868	6,502,105	7,113,868	6,502,105
536,840,000	246,540,477	536,840,000	246,540,477
8,875,126	9,984,526	8,875,126	9,984,526
552,828,994	263,027,108	552,828,994	263,027,108
40,865,145	33,001,613	40,865,145	33,001,613
270,202,758	696,369,563	270,202,758	696,369,563
1,109,400	1,109,400	1,109,400	1,109,400
92,286,983	47,443,616	92,286,983	47,443,616
317,468	317,468	317,468	317,468
308,106,204	133,764,447	308,106,204	133,764,447
70,524,988	55,612,497	70,490,548	55,596,097
61,521,090	39,351,302	61,521,090	39,351,302
844,934,036	1,006,969,906	844,899,596	1,006,953,506
1,397,763,030	1,269,997,014	1,397,728,591	1,269,980,614
1,167,252,017	1,285,775,659	1,167,532,115	1,285,903,158

Net Assets per Share - (LKR)

(3.47)

0.24

(3.47)

0.24

The figures as at 31st March 2022 are provisional & subject to audit.

Figures in brackets indicate deductions.

……………….…….……………

Head of Finance

Approved and signed for and on behalf of the Board

……………….…….……………	……………….……
Director	Director

Colombo

06th June 2022

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HVA FOODS PLC

Statement of Changes in Equity

Provisional Financial Statements for the Twelve months ended 31st March 2022

All amounts in Sri Lanka Rupees

Group
	Attributable to equity holders of the company
			Revaluation		Retained					Non-
	Stated capital				Total			controlling		Total
		reserves		earnings
								interest
Balance as at 01st April 2020
333,857,588	237,613,039	(634,355,113)	(62,884,486)	-	(62,884,486)
Profit / (Loss)for the Period	-	-	78,590,107	78,590,107	-	78,590,107
Other comprehensive income	-	-	84,912	-	-	84,912
Defined benefit plan acturial gain	-	-
Tax on other comprehensive income / (loss)	-	-	(11,888)						(11,888)
Balance as at 31st March 2021	333,857,588	237,613,039	(555,691,982)	15,705,621	-	15,778,645
Balance as at 01st April 2021	333,857,588	237,613,039	(555,691,982)	15,705,621	-	15,778,645
Realisation of revaluation surplus		(220,911,968)	220,911,968	-				-
Profit / (Loss)for the Period	-	-	(246,334,979)	(246,334,979)				(246,334,979)
Defined benefit plan actuarial gain	-	-	52,698	52,698	-	52,698
Revaluation gain of Property, Plant and Equipment	-	-	-	-	-	-
Tax on other comprehensive income	-	-	(7,378)	(7,378)	-	(7,378)
Balance as at 31st March 2022	333,857,588	16,701,071	(581,069,673)	(230,584,038)	-	(230,511,014)
Company					Stated capital		Revaluation			Retained		Total
						reserves			earnings
Balance as at 01st April 2020
			333,857,588	237,613,039	(634,183,814)	(62,713,187)
Profit / (Loss)for the Period				-	-	78,562,707	78,562,707
Defined benefit plan actuarial gain				-	-	84,912	84,912
Other comprehensive income				-	-	-	-
Defined benefit plan acturial gain
Tax on other comprehensive income / (loss)								(11,888)	(11,888)
Balance as at 31st March 2021				333,857,588	237,613,039	(555,548,083)	15,922,544
Balance as at 01st April 2021				333,857,588	237,613,039	(555,548,083)	15,922,544
Profit / (Loss)for the Period				-	-	(246,164,339)	(246,164,339)
											-
Defined benefit plan actuarial gain				-	-	52,698	52,698
											-
Revaluation gain of Property, Plant and Equipments			-	-	-	-
											-
Tax on other comprehensive income				-	-	(7,378)	(7,378)
											-
Realisation of revaluation surplus						(220,911,968)	220,911,968	-
												-
Balance as at 31st March 2022				333,857,588	16,701,071	(580,755,134)	(230,196,475)

Figures in brackets indicate deductions.

The above figures are not audited

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