Keells Food Products : Interim Financial Statements as @ 31st March 2024

Keells Food Products PLC

Interim Financial Statements

31st March 2024

Keells Food Products PLC - PQ3

117, Sir Chittampalam A. Gardiner Mawatha

Colombo 2.

CONSOLIDATED INCOME STATEMENT										1
			Quarter ended 31st March	Year ended 31st March
		Notes	2024		2023	Change %		2024	2023	Change %
Continuing operations
Goods transferred at a point in time			1,470,243		1,289,123	14			5,798,813	6,444,270	(10)
Revenue from contracts with customers			1,470,243		1,289,123	14			5,798,813	6,444,270	(10)
Cost of sales			(1,119,135)		(1,056,541)	6			(4,521,932)	(5,057,947)	(11)
Gross profit			351,108			232,582	51			1,276,881	1,386,323	(8)
Other operating income			7,294		13,424	(46)			20,307	23,821	(15)
Selling and distribution expenses			(214,464)		(187,673)	14			(802,771)	(742,768)	8
Administrative expenses			(79,887)		(65,344)	22			(350,895)	(289,705)	21
Other operating expenses			(76,333)		(47,387)	61			(280,708)	(147,194)	91
Results from operating activities			(12,282)			(54,398)	(77)			(137,186)	230,477	(160)
Finance cost		6	(27,377)		(72,583)	(62)			(166,849)	(172,323)	(3)
Finance income		6	3,681		2,943	25			14,098	10,961	29
Net finance cost			(23,696)			(69,640)	(37)			(152,751)			(161,362)	26
Profit/(Loss) before tax			(35,978)			(124,038)	(71)			(289,937)	69,115	(519)
Tax (expense)/ reversal		7	458		37,752	(99)			71,666	(55,170)	(230)
Profit / (Loss) for the period			(35,520)			(86,286)	(59)			(218,271)	13,945	(1,665)
Attributable to:
Equity holders of the Parent			(35,520)		(86,286)	(59)			(218,271)	13,945	(1,665)
			(35,520)		(86,286)	(59)			(218,271)	13,945	(1,665)
			LKR.			LKR.				LKR.			LKR.
Earnings per share
Basic/Diluted			(1.39)			(3.38)				(8.56)			0.55
Dividend per share			-			1.50				0.50			2.00

Note : All values are in LKR '000s, unless otherwise stated.

Figures in brackets indicate deductions.

The above figures are not audited.

Keells Food Products PLC - PQ3

117, Sir Chittampalam A. Gardiner Mawatha

Colombo 2.

		CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME					2
					Quarter ended 31st March	Year ended 31st March
					2024			2023			2024	2023
		Profit/(Loss) for the period	(35,520)			(86,286)			(218,271)	13,945
		Other comprehensive income
		Other comprehensive income to be reclassified to income
		statement in subsequent periods
		Currency translation of foreign operations	305			(3,850)			4,122		(4,223)
		Net other comprehensive income /(expense) to be reclassified to	305			(3,850)			4,122	(4,223)
		income statement in subsequent periods
		Other comprehensive income not to be reclassified to
		income statement in subsequent periods
		Revaluation gain on land and buildings	7,787			105,561			7,787	105,561
		Re-measurement gain / (loss) on defined benefit plans	(36,621)			38,792			(36,621)	38,792
		Net other comprehensive income/(expense) not to be reclassified	(28,834)			144,353			(28,834)	144,353
		to income statement in subsequent periods
		Tax (expense) / reversal on other comprehensive income		8,650			(43,307)			8,650	(91,103)
		Other comprehensive income/(expense) for the period,		(19,879)			97,196			(16,062)	49,027
		net of tax
		Total comprehensive income/(expense) for the period, net of tax	(55,399)			10,910			(234,333)	62,972
		Attributable to:
		Equity holders of the Parent	(55,399)			10,910			(234,333)	62,972

Note : All values are in LKR '000s, unless otherwise stated. Figures in brackets indicate deductions.

The above figures are not audited.

Keells Food Products PLC - PQ3

117, Sir Chittampalam A. Gardiner Mawatha

Colombo 2.

		CONSOLIDATED STATEMENT OF FINANCIAL POSITION				3
		As at	31.03.2024		31.03.2023
		ASSETS
		Non-current assets
		Property, plant and equipment		1,675,939		1,702,029
		Right of use assets		3,617		5,040
		Intangible assets		247,822		248,809
		Non-current financial assets		58,780		48,504
		Other non-current assets		28,657		22,900
				2,014,815		2,027,282
		Current assets
		Inventories		889,488		1,194,409
		Trade and other receivables		731,274		685,366
		Amounts due from related parties		205,560		235,714
		Income Tax receivable		31,861		31,861
		Other current assets		20,227		77,794
		Cash in hand and at bank		68,655		50,269
				1,947,065		2,275,413
		Total assets		3,961,880		4,302,695
		EQUITY AND LIABILITIES
		Equity attributable to equity holders of the parent
		Stated capital		1,294,815		1,294,815
		Revenue reserves		143,013		399,669
		Other components of equity		425,433		413,792
		Total equity		1,863,261		2,108,276
		Non-current liabilities
		Lease liabilities		3,357		5,019
		Deferred tax liabilities		206,191		286,507
		Employee benefit liabilities		160,425		114,081
				369,973		405,607
		Current liabilities
		Trade and other payables		564,474		506,023
		Amounts due to related parties		45,164		14,998
		Interest-bearing loans and borrowings		224,916		67,213
		Lease liabilities		1,663		1,391
		Other current liabilities		42,914		36,341
		Bank overdrafts		849,515		1,162,846
				1,728,646		1,788,812
		Total equity and liabilities		3,961,880		4,302,695
				LKR			LKR
		Net assets per share		73.07			82.68
		Note : All values are in LKR '000s, unless otherwise stated.
		The above figures are not audited.
		I certify that the Financial Statements comply with the requirements of the Companies Act No.07 of 2007.
		P N Fernando
		Chief Financial Officer/ Director
		The Board of Directors is responsible for these Financial Statements.
		D P Gamlath	J G A Cooray
		Director	Director

20th May 2024

Colombo

Keells Food Products PLC - PQ3

117, Sir Chittampalam A. Gardiner Mawatha

Colombo 2.

		CONSOLIDATED STATEMENT OF CASH FLOWS		4
		For the year ended 31st March	2024	2023
		OPERATING ACTIVITIES
		Profit/(Loss) before tax	(289,937)			69,115
		Adjustments for:
			Finance income*	(14,098)			(10,961)
			Finance cost	166,849			172,323
			Depreciation of property, plant and equipment	222,594			194,264
			Amortisation of right of use assets	1,423			1,461
			Amortisation of intangible assets	1,512			1,083
			Net (Gain)/Loss on sale of property, plant and equipment	(26)			(11,942)
			Employees benefit provisions and related costs	32,313			9,302
			Provision /(reversal) for slow moving inventory	5,219			(1,707)
			Provision /(reversal) for Impairment of trade receivables	3,073			2,073
			Share based payment expense/(reversal)	2,068			(404)
		Profit before working capital changes	130,990			424,607
		(Increase) / Decrease in inventories	299,702			(606,975)
		(Increase) / Decrease in trade and other receivables	(55,193)			(71,041)
		(Increase) / Decrease in amounts due from related parties	30,154			(39,556)
		(Increase) / Decrease in other current assets	57,567			30,814
		Increase / (Decrease) in trade and other payables	58,451			(21,143)
		Increase / (Decrease) in amounts due to related parties	30,166			(6,858)
		Increase / (Decrease) in other current liabilities	6,573			12,904
		Cash generated from / (used in) operating activities	558,410			(277,248)
		Finance income received	4,277			4,390
		Finance cost paid**	(165,829)			(171,384)
		Surcharge tax paid	-			(95,923)
		Tax paid	-			(82,331)
		Gratuity paid/transfers	(22,590)			(549)
		Net cash flow generated from/(used in) operating activities	374,268			(623,045)
		INVESTING ACTIVITIES
		Purchase and construction of property, plant and equipment	(188,857)			(289,824)
		Purchase of intangible assets	(525)			(2,271)
		Proceeds from sale of property, plant and equipment	166			13,885
		Net cash flow used in investing activities	(189,216)			(278,210)
		FINANCING ACTIVITIES
		Dividend paid	(12,750)			(51,000)
		Proceeds from interest-bearing loans and borrowings	224,916			25,000
		Repayment of interest-bearing loans and borrowings		(67,213)			(43,455)
		Payment of lease liabilities		(2,410)			(2,284)
		Net cash flow from / (used) in financing activities	142,543			(71,739)
		NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS	327,595			(972,994)
		CASH AND CASH EQUIVALENTS AT THE BEGINNING	(1,112,577)			(135,360)
		Effect	of exchange rate changes		4,122	(4,223)
		CASH AND CASH EQUIVALENTS AT THE END	(780,860)			(1,112,577)
		ANALYSIS OF CASH AND CASH EQUIVALENTS
		Favourable balances
		Cash in hand and at bank	68,655			50,269
		Unfavourable balances
		Bank overdrafts	(849,515)			(1,162,846)
		Total cash and cash equivalents	(780,860)			(1,112,577)

*Finance income includes, notional interest pertaining to loans granted to executive staff, and has been adjusted in the cash flows.

**Finance cost paid represents the finance cost incurred excluding interest on lease liabilities.

Note : All values are in LKR '000s, unless otherwise stated.

Figures in brackets indicate deductions.

The above figures are not audited.

Keells Food Products PLC - PQ3

117, Sir Chittampalam A. Gardiner Mawatha

Colombo 2.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY				5
		Attributable to equity holders of Parent
	Stated	Revaluation	Foreign	Other	Revenue	Total
	capital	reserve	currency	capital	reserves	Equity
			translation	reserve
			reserve
As at 1st April 2022	1,294,815	338,274	(4,609)	60,807	407,421	2,096,708
Profit for the period	-	-	-	-	13,945	13,945
Other comprehensive income/(expense)	-	23,947	(4,223)	-	29,303	49,027
Total comprehensive income	-	23,947	(4,223)	-	43,248	62,972
Share based payments	-	-	-	(404)	-	(404)
Final dividend paid - 2021/22	-	-	-	-	(12,750)	(12,750)
Interim dividend paid - 2022/23	-	-	-	-	(38,250)	(38,250)
As at 1st April 2023	1,294,815	362,221	(8,832)	60,403	399,669	2,108,276
Loss for the period	-	-	-	-	(218,271)	(218,271)
Other comprehensive income/(expense)	-	5,451	4,122	-	(25,635)	(16,062)
Total comprehensive income/(expense)	-	5,451	4,122	-	(243,906)	(234,333)
Share based payments	-	-	-	2,068	-	2,068
Final dividend paid - 2022/23	-	-	-	-	(12,750)	(12,750)
As at 31st March 2024	1,294,815	367,672	(4,710)	62,471	143,013	1,863,261

Note : All values are in LKR '000s, unless otherwise stated. Figures in brackets indicate deductions.

The above figures are not audited.

Keells Food Products PLC - PQ3

117, Sir Chittampalam A. Gardiner Mawatha

Colombo 2.

		COMPANY INCOME STATEMENT										6
						Quarter ended 31st March		Year ended 31st March
				Notes		2024	2023	Change %			2024	2023	Change %
		Continuing operations
		Goods transferred at a point in time			1,470,243	1,289,123	14			5,798,813	6,444,270	(10)
		Revenue from contracts with customers			1,470,243	1,289,123	14			5,798,813	6,444,270	(10)
		Cost of sales			(1,119,135)	(1,056,541)	6			(4,521,932)	(5,057,947)	(11)
		Gross profit				351,108	232,582	51			1,276,881	1,386,323	(8)
		Other operating income			7,461	13,424	(44)			18,548	23,821	(22)
		Selling and distribution expenses			(214,464)	(187,673)	14			(802,771)	(742,768)	8
		Administrative expenses			(79,241)	(66,741)	19			(350,075)	(288,924)	21
		Other operating expenses			(76,503)	(47,387)	61			(280,708)	(147,194)	91
		Results from operating activities			(11,639)	(55,795)	(79)			(138,125)	231,258	(160)
		Finance cost	6		(27,377)	(72,583)	(62)			(166,849)	(172,323)	(3)
		Finance income	6		3,681	2,943	25			14,098	10,961	29
		Net finance cost			(23,696)	(69,640)	(37)			(152,751)	(161,362)	26
		Profit/(Loss) before tax			(35,335)		(125,435)	(72)			(290,876)	69,896	(516)
		Tax (expense)/ reversal	7		458	37,752	(99)			71,666	(55,170)	(230)
		Profit/(Loss) for the period			(34,877)	(87,683)	(60)			(219,210)	14,726	(1,589)
						LKR.		LKR.				LKR.		LKR.
		Dividend per share			-		1.50				0.50		2.00

Note : All values are in LKR '000s, unless otherwise stated. Figures in brackets indicate deductions.

The above figures are not audited.

Keells Food Products PLC - PQ3

117, Sir Chittampalam A. Gardiner Mawatha

Colombo 2.

		COMPANY STATEMENT OF COMPREHENSIVE INCOME						7
			Quarter ended 31st March	Year ended 31st March
			2024	2023			2024	2023
		Profit/(Loss) for the period	(34,877)	(87,683)			(219,210)	14,726
		Other comprehensive income
		Other comprehensive income to be reclassified to income
		statement in subsequent periods
		Revaluation gain on land and buildings	7,787	105,561			7,787	105,561
		Re-measurement gain / (loss) on defined benefit plans	(36,621)	38,792			(36,621)	38,792
		Net other comprehensive income/(expense) not to be reclassified
		to income statement in subsequent periods	(28,834)		144,353			(28,834)		144,353
		Tax (expense) / reversal on other comprehensive income	8,650	(43,307)			8,650	(91,103)
		Other comprehensive income/(expense) for the period, net of tax	(20,184)		101,046			(20,184)	53,250
		Total comprehensive income/(expsne) for the period, net of tax	(55,061)	13,363			(239,394)	67,976

Note : All values are in LKR '000s, unless otherwise stated.

Figures in brackets indicate deductions.

The above figures are not audited.

Keells Food Products PLC - PQ3

117, Sir Chittampalam A. Gardiner Mawatha

Colombo 2.

		COMPANY STATEMENT OF FINANCIAL POSITION			8
		As at	31.03.2024	31.03.2023
		ASSETS
		Non-current assets
		Property, plant and equipment		1,675,939		1,702,029
		Right of use assets		3,617		5,040
		Intangible assets		247,822		248,809
		Non-current financial assets		58,780		48,504
		Other non-current assets		28,657		22,900
				2,014,815		2,027,282
		Current assets
		Inventories		889,488		1,194,409
		Trade and other receivables		731,274		685,366
		Amounts due from related parties		205,560		235,714
		Income Tax receivable		31,861		31,861
		Other current assets		20,223		77,794
		Cash in hand and at bank		67,836		50,108
				1,946,242		2,275,252
		Total assets		3,961,057		4,302,534
		EQUITY AND LIABILITIES
		Stated capital		1,294,815		1,294,815
		Revenue reserves		142,076		399,671
		Other components of equity		430,143		422,624
		Total equity		1,867,034		2,117,110
		Non-current liabilities
		Lease liabilities		3,357		5,019
		Deferred tax liabilities		206,191		286,507
		Employee benefit liabilities		160,425		114,081
				369,973	405,607
		Current liabilities
		Trade and other payables		560,098		497,311
		Amounts due to related parties		45,164		14,998
		Interest-bearing loans and borrowings		224,916		67,213
		Lease liabilities		1,663		1,391
		Other current liabilities		42,836		36,341
		Bank overdrafts		849,373		1,162,563
				1,724,050		1,779,817
		Total equity and liabilities		3,961,057		4,302,534
				LKR		LKR
		Net assets per share		73.22		83.02
				-		-
		Note : All values are in LKR '000s, unless otherwise stated.
		The above figures are not audited.
		I certify that the Financial Statements comply with the requirements of the Companies Act No.07 of 2007.
		P N Fernando
		Chief Financial Officer/ Director
		The Board of Directors is responsible for these Financial Statements.
		D P Gamlath	J G A Cooray
		Director	Director

20th May 2024

Colombo

Keells Food Products PLC - PQ3

117, Sir Chittampalam A. Gardiner Mawatha

Colombo 2.

COMPANY STATEMENT OF CASH FLOWS		9
For the year ended 31st March	2024	2023
OPERATING ACTIVITIES
Profit/(Loss) before tax	(290,876)		69,896
Adjustments for:
Finance income*	(14,098)		(10,961)
Finance cost	166,849		172,323
Depreciation of property, plant and equipment	222,594		194,264
Amortisation of right of use assets	1,423		1,461
Amortisation of intangible assets	1,512		1,083
Net (Gain)/Loss on sale of property, plant and equipment	(26)		(11,942)
Employees benefit provisions and related costs	32,313		9,302
Provision /(reversal) for slow moving inventory	5,219		(1,707)
Provision /(reversal) for Impairment of trade receivables	3,073		2,073
Share based payment expense/(reversal)	2,068		(404)
Profit before working capital changes	130,051		425,388
(Increase) / Decrease in inventories	299,702		(606,975)
(Increase) / Decrease in trade and other receivables	(55,193)		(71,041)
(Increase) / Decrease in amounts due from related parties	30,154		(39,556)
(Increase) / Decrease in other current assets	57,571		30,814
Increase / (Decrease) in trade and other payables	62,787		(24,911)
Increase / (Decrease) in amounts due to related parties	30,166		(6,858)
Increase / (Decrease) in other current liabilities	6,495		12,904
Cash generated from / (used in) operating activities	561,733		(280,235)
Finance income received	4,277		4,390
Finance cost paid**	(165,829)		(171,384)
Surcharge tax paid	-		(95,923)
Tax paid	-		(82,331)
Gratuity paid/transfers	(22,590)		(549)
Net cash flow generated from/(used in) operating activities	377,591		(626,032)
INVESTING ACTIVITIES
Purchase and construction of property, plant and equipment	(188,857)		(289,824)
Purchase of intangible assets	(525)		(2,271)
Proceeds from sale of property, plant and equipment	166		13,885
Net cash flow used in investing activities	(189,216)		(278,210)
FINANCING ACTIVITIES
Dividend paid	(12,750)		(51,000)
Proceeds from interest-bearing loans and borrowings	224,916		25,000
Repayment of interest-bearing loans and borrowings	(67,213)		(43,455)
Payment of lease liabilities	(2,410)		(2,284)
Net cash flow from / (used) in financing activities	142,543		(71,739)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS	330,918		(975,981)
CASH AND CASH EQUIVALENTS AT THE BEGINNING	(1,112,455)	(136,474)
CASH AND CASH EQUIVALENTS AT THE END	(781,537)		(1,112,455)
ANALYSIS OF CASH & CASH EQUIVALENTS
Favourable balances
Cash in hand and at bank	67,836	50,108
Unfavourable balances
Bank overdrafts	(849,373)	(1,162,563)
Total cash and cash equivalents	(781,537)		(1,112,455)

*Finance income includes, notional interest pertaining to loans granted to executive staff, and has been adjusted in the cash flows. **Finance cost paid represents the finance cost incurred excluding interest on lease liabilities.

Note : All values are in LKR '000s, unless otherwise stated.

Figures in brackets indicate deductions.

The above figures are not audited.