Three Acre Farms : Interim Financial statments for the six months ended 30th June 2022

THREE ACRE FARMS PLC

INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2022

QUARTERLY REVIEW for the second quarter ended 30 June 2022

The Group's revenue for the second quarter of 2022 was Rs.1,818.0 Mn compared to Rs.779.0 Mn during the same quarter of 2021, representing an increase of Rs.1,039.0 Mn or 133%. The Group's revenue for the first half of 2022 was Rs.3,417.6 Mn compared to Rs.1,595.3 Mn during the first half of 2021, representing an increase of Rs.1,822.3 Mn or 114%.

The Group reported a total comprehensive income of Rs.168.1 Mn for the second quarter of 2022 compared to Rs.127.1 Mn during the same quarter of 2021, representing an increase of Rs.41.0 Mn or 32%. The Group reported a total comprehensive income of Rs.378.8 Mn for the first half of 2022 compared to Rs.419.5 Mn during the first half of 2021, representing a decrease of Rs.40.7 Mn or 10%.

The Group reported a growth in revenue mainly due to the higher prices for Broiler Day Old Chicks (DOCs) and Live Broiler Birds. However, the demand for Layer DOCs continued to be affected by the farmers' discontinuation of their operations to cut losses due to the unavailability of feed at affordable prices. The hyperinflationary environment in the country increased the production and overhead costs for the Group, which caused the decline in the profits for the first six months of the year. In light of the prevailing economic uncertainties and fuel crisis, the demand for DOCs is expected to further weaken affecting sales and profitability of the Breeder operations.

The Company and the Group have adhered to the Sri Lanka Financial Reporting Standards in the preparation of the interim financial statements for the period ended 30 June 2022.

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

(Sgd.) Wickrema Senaka Weerasooria

Non-Executive Independent Chairman

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

Secretaries

Interim Financial Statements

Three Acre Farms PLC | 2

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

All amounts in Sri Lankan Rupees thousands

		Group		Group		Company
For the three months ended 30 June		2022				2021	Change		2022		2021
Revenue		1,817,985				778,954	133%		1,663,432		632,424
Cost of sales					(549,277)	199%
	(1,641,142)					(1,527,616)		(451,923)
Gross profit		176,843				229,677	(23%)		135,816		180,501
Other operating expenses		(26,328)				(21,947)	20%		(16,367)		(16,981)
Selling and distribution expenses		(3,921)				(3,611)	9%		(3,921)		(3,611)
Administrative expenses		(8,807)				(9,186)	(4%)		(6,786)		(7,231)
Operating profit		137,787				194,933	(29%)		108,742		152,678
Interest income		45,052				36,303	24%		50,730		30,247
Net finance (costs) / income		(3,950)				3,813	NM		(4,106)		3,582
Profit before tax		178,889				235,049	(24%)		155,366		186,507
Taxation		(10,813)				(107,975)	(90%)		(10,900)		(110,840)
Profit for the period		168,076				127,074	32%		144,466		75,667

Other comprehensive income for the period,
net of tax	-	-	-	-	-
Total comprehensive income for the period	168,076	127,074	32%	144,466	75,667
Profit attributable to :
Equity holders of the parent	168,076	127,074	-	144,466	75,667
	168,076	127,074	-	144,466	75,667
Total comprehensive income attributable to :
Equity holders of the parent	168,076	127,074	-	144,466	75,667
	168,076	127,074	-	144,466	75,667
Basic earnings per share (Rs.)	7.14	5.40		6.14	3.21

Interim Financial Statements

Three Acre Farms PLC | 3

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

All amounts in Sri Lankan Rupees thousands

		Group	Group		Company
For the six months ended 30 June		2022			2021	Change		2022		2021
Revenue		3,417,583			1,595,325	114%		3,094,282		1,298,350
Cost of sales		(2,924,112)			(1,059,926)	176%		(2,727,186)		(856,979)
Gross profit		493,471			535,399	(8%)		367,096		441,371
Other operating expenses		(174,257)			(27,455)	535%				(4,207)
				(134,296)
Selling and distribution expenses		(7,369)			(5,512)	34%		(7,369)		(5,512)
Administrative expenses		(18,380)			(17,763)	3%		(14,337)		(14,356)
Operating profit		293,465			484,669	(39%)		211,094		417,296
Interest income		116,886			74,194	58%		107,782		61,422
Net finance (costs) / income		(3,603)			19,132	NM		(3,934)		18,655
Profit before tax		406,748			577,995	(30%)		314,942		497,373
Taxation		(27,940)			(158,514)	(82%)		(24,487)		(156,380)
Profit for the period		378,808			419,481	(10%)		290,455		340,993

Other comprehensive income for the period,
net of tax	-	-	-	-	-
Total comprehensive income for the period	378,808	419,481	(10%)	290,455	340,993
Profit attributable to :
Equity holders of the parent	378,808	419,481	-	290,455	340,993
	378,808	419,481		290,455	340,993
Total comprehensive income attributable to :
Equity holders of the parent	378,808	419,481	-	290,455	340,993
	378,808	419,481	-	290,455	340,993

Basic earnings per share (Rs.)	16.09		17.82	12.34	14.48

Interim Financial Statements

Three Acre Farms PLC | 4

STATEMENT OF FINANCIAL POSITION

All amounts in Sri Lankan Rupees thousands
	Group	Company
As at	30.06.2022	31.12.2021	30.06.2022	31.12.2021
Assets
Non-current assets
Property, plant and equipment	1,267,594	1,217,550	1,006,960	949,327
Right-of-use assets	3,572	4,763	6,697	8,931
Investment in subsidiary companies	-	-	-	-
Biological assets	469,831	540,229	371,612	435,920
Total non-current assets	1,740,997	1,762,542	1,385,269	1,394,178
Current assets
Biological assets	36,103	17,143	31,866	13,706
Inventories	485,519	169,766	465,954	147,871
Trade and other receivables	112,102	60,387	99,262	50,445
Amount due from related companies	2,005,335	211,368	1,242,377	450,733
Cash and cash equivalents	2,139,809	4,056,173	2,133,520	3,144,612
Total current assets	4,778,868	4,514,837	3,972,979	3,807,367
Total assets	6,519,865	6,277,379	5,358,248	5,201,545
Equity
Stated capital	623,604	623,604	623,604	623,604
Retained earnings	4,900,459	4,757,101	3,971,237	3,916,232
Total equity	5,524,063	5,380,705	4,594,841	4,539,836
Liabilities
Non-current liabilities
Deferred tax liabilities	165,840	165,840	128,029	128,029
Lease liabilities	964	2,067	1,808	3,876
Employee benefits	31,727	30,107	29,893	28,393
Total non-current liabilities	198,531	198,014	159,730	160,298
Current liabilities
Trade and other payables	775,838	679,070	581,750	481,151
Lease liabilities	3,540	3,738	6,637	7,010
Amount due to related companies	17,893	15,852	15,290	13,250
Total current liabilities	797,271	698,660	603,677	501,411
Total liabilities	995,802	896,674	763,407	661,709
Total equity and liabilities	6,519,865	6,277,379	5,358,248	5,201,545
Net asset per share (Rs.)	234.62	228.53	195.15	192.82

	(Sgd.) K.A.R.S.Perera
	General Manager
(Sgd.) Wickrema Senaka Weerasooria	(Sgd.) Dr. Prathap Ramanujam
Non-Executive Independent Chairman	Non-Executive Independent Director

Interim Financial Statements

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