Three Acre Farms PLC March profits down 28% to Rs 211M

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The Group’s revenue for the first quarter of 2022 was Rs 1,599.6 million compared to Rs 816.4 million during the same quarter of 2021, representing an increase of Rs 783.2 million or 96%. The Company’s revenue for the first quarter of 2022 was Rs 1,430.9 million compared to Rs 665.9 million during the same quarter of 2021, representing an increase of Rs 765 million or 115%.

The Group reported a profit of Rs 210.7 million for the first quarter of 2022 compared to Rs 292.4 million during the same quarter of 2021, representing a decrease of Rs 81.7 million or 28%. The Company reported a profit of Rs 146 million for the first quarter of 2022 compared to Rs 265.3 million during the same quarter of 2021, representing a decrease of Rs 119.3 million or 45%.

The Group reported notable growth in revenue due to the increased demand and higher prices for Broiler Day Old Chicks (DOCs) and the improved export sale of Parent Stock Day Old Chicks to regional countries. However, the demand for Layer DOCs continued to be affected by the instability in the table egg market. However, the Group’s profitability was adversely affected by the escalating feed prices and overheads costs.

The exponential increase in feed prices, the short supply of feed driven by the unavailability of imported and local raw materials and rising costs and shortage of fuel, gas, and other commodities added further pressure to the increase in cost of production. Higher prices also exerted similar pressures on farmers, making it more difficult for them to maintain flocks.

Consequently, the demand for Broiler DOCs is expected to deteriorate further, which will negatively affect the profitability of the Group.

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 31 March 2022.