Ceylon Grain Elevators PLC’s Net profit during the first quarter of the year 2012 has seen a massive drop compared with the same period of last year owing to high cost of sales and also Exchange losses.
Issuing its interim financial results, the firm says, net profit during the first quarter of this year recorded a sum of Rs. 0.58 million, compared to Rs. 94.33 million achieved during the first quarter of 2011.
This is a year on year decline of 99%.
Ceylon Grain Elevators also says that its cost of sales during the first quarter of the year 2012 has gone up by 43% compared to the same period of last year.
The cost has gone up owing to the increase in feed volume and raw material prices.
It has also suffered a loss of Rs. 153 million owing to the depreciation of the Sri Lankan rupee against the dollar, during the 1st quarter of 2012.
“To mitigate the situation the Company has increased purchases of local maize as the country’s local Maize production has improved significantly with the favorable weather conditions when compared to the previous year” added the Interim financial results statement issued by the firm which was signed by its Chairman and CEO Cheng Chih Kwong.
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