Ceylon Grain Elevators sees improved profits with recovering poultry business

The recovery in poultry feed related business and the increasing demand for chicken have elevated the top and bottom-lines of Ceylon Grain Elevators PLC  in the first quarter of 2024 (1Q24). The Group’s top line rose by 29 percent YoY to Rs.5.43 billion in the quarter largely attributed to the increasing demand for compound feed and Broiler & Layer Day Old Chicks (DOCs).

This rise in demand has been driven mainly by increased inputs from farmers, competitive pricing strategies, and incentives implemented by the company.

Despite a 19 percent YoY increase in cost of sales, the poultry industry leader reported Rs.1.2 billion in gross profits with a 78 percent YoY growth. 

The operating profits of Ceylon Grain Elevators rose by 112 percent YoY to over Rs.1 billion in the period as it was able to cut down administrative expenses marginally. However, Ceylon Grain Elevators saw tax expenses rising by 189 percent YoY to Rs.853.26 million in the period.

The producer of Prima branded chicken and animal feed reported earnings of Rs.9.82 a share or Rs.935.4 million in the period, up from Rs.6.24 a share or Rs.463.95 million a year ago.

“Seasonal demand for DOCs has boosted profitability. These developments were supported by stable market conditions, which demonstrated the company’s ability to capitalise on opportunities effectively,” the company said.