Interim condensed financial statements for the quarter ended 30th June 2025

INTERIM CONDENSED FINANCIAL STATEMENTS

Quarter ended 30 June, 2025

INTERIM CONDENSED FINANCIAL STATEMENTS

Management Review

Dear Shareholder,

Watawala Plantations PLC (CSE: WATA)

Watawala Plantations PLC posted a revenue of LKR 2,492 million at group level for the quarter ended 30th June 2025 (1Q FY 25/26), up 20.6% YoY due to a 27.2% YoY increase in revenue in the oil palm business offset by a 14.6% YoY decrease in revenue in the dairy business.

Profit after tax (PAT) at group level was LKR 826 million, up 41.9% YoY. The increase in

net profit was mainly driven by revenue growth along with margin improvements in the oil palm business. The net assets per share at group level decreased to LKR 3.03 as of 30 th June 2025 from LKR 3.51 as of 31st March 2025.

Oil Palm

Revenue was LKR 2,213 million, up 27.2% YoY driven by an increase in both price and sales volume compared to last year. Sales volumes were above the corresponding period last year due to a higher volume of crop processed and better oil extraction rates. Cost of

sales decreased 1.4% YoY primarily due to the lower fertilizer cost resulting from a lower volume of fertilizer applied offset by a higher cost for purchase of oil palm crop.

Lonach Dairy Limited (LDL)

Revenue was LKR 278.5 million for 1Q FY25/26, down 14.6% YoY. Cost of sales reduced 21.1% YoY mainly due to the reduction in cost of feed, thereby converting the gross loss of LKR 11.5 million in the corresponding quarter last year to a gross profit of LKR 12.0 million. The reduction in other operating income by LKR 67.0 million resulted in the Company recording a net loss of LKR 25.5 million.

Outlook

Global palm oil prices dipped in 1Q FY25/26 compared to the prices in 4Q FY24/25. The Company expect a marginal recovery in global price in 2Q FY25/26. Meanwhile, the domestic palm oil price which increased in 4Q FY24/25 is expected to continue into the next quarter. The Company expect 1H FY25/26 to be challenging for the dairy sector due to a drop in milk quantity, despite maintaining strong milk yield.

30th July 2025

INTERIM CONDENSED FINANCIAL STATEMENTS

Condensed Consolidated Income Statement

(all amounts in Sri Lankan Rupees thousands)

INTERIM CONDENSED FINANCIAL STATEMENTS

Condensed Company Income Statement

(all amounts in Sri Lankan Rupees thousands)

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INTERIM CONDENSED FINANCIAL STATEMENTS

Condensed Statement of changes in equity - Group

(all amounts in Sri Lankan Rupees thousands)

INTERIM CONDENSED FINANCIAL STATEMENTS

Condensed Statement of changes in equity - Company

(all amounts in Sri Lankan Rupees thousands)

INTERIM CONDENSED FINANCIAL STATEMENTS

Condensed Consolidated Statement of cash flows

(all amounts in Sri Lankan Rupees thousands)

INTERIM CONDENSED FINANCIAL STATEMENTS

Segmental Analysis - Group

(all amounts in Sri Lankan Rupees thousands)

INTERIM CONDENSED FINANCIAL STATEMENTS

Notes to the Condensed Interim Financial Statements

1. Corporate information

   Watawala Plantations PLC (the Company) is a public limited liability company incorporated and domiciled in Sri Lanka. It is listed on the Colombo Stock Exchange. The registered office of the Company is located at No 60, Dharmapala, Mawatha, Colombo 3.

   The principal activities of the Group during the period continued to be cultivation, manufacture and sale of crude palm oil and Dairy farming.

2. Condensed Interim consolidated financial statements

   The Consolidated Condensed Interim Financial Statements of the Watawala Plantations PLC as at and for the period ended 30 June 2025 comprised the Company and subsidiary Lonach Dairy Ltd.

3. Approval of financial statements

   The Condensed Interim Financial Statements of the Group and the Company for the period ended 30 June 2025 were authorised to be published by the Board of Directors on 30 June 2025.

4. Basis of preparation

   These Condensed Interim Financial Statements of the Company and the Group have been prepared in accordance with Sri Lanka Accounting Standards (SLFRS/ LKAS). These interim financial statements should be read in conjuction with the annual financial statements for the year ended 31st March 2025

   Further, provisions of the Companies Act No.7 of 2007 have been considered in preparing these Condensed Interim Financial Statements. There were no changes to the Accounting Policies and methods of computation since the publication of the Annual Report 2024/25, except these Condensed Interim Financial Statements have been prepared in compliance with the requirements of the Sri Lanka Accounting Margin - LKAS 34 on 'Interim Financial Reporting'. Previous year figures and phrases have been re-arranged wherever necessary to conform to the current presentation.

5. Net assets per share

   Net assets per share has been calculated, for all periods, based on the number of shares in issue as at the Statement of Financial Position date.

6. Events after reporting date

   No circumstance has arisen since the reporting date which would require adjustment to or disclosure in the interim financial statements.

7. There has been no change in the contingent liabilities at

   the quarter end as compared to 31 March 2025.

8. Fair value adjustments are done bi-annually as per the policy of the Company. Hence, Condensed Interim Financial Statements reflected any such changes.

9. Fair values of financial instruments

   The Group measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements.

   Level 1: Quoted market price (unadjusted) in an active market for an identical instrument.

   Level 2: Valuation techniques based on observable inputs, either directly - i.e. as prices or indirectly - i.e. derived from prices. This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques where all significant inputs are directly or indirectly observable from market data.

   Level 3: Valuation techniques using significant unobservable inputs. This category includes all instruments where the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument's valuation. This category includes instruments that are valued based on quoted prices for similar instruments where significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

   0011 WATAWALA PLANTATIONS PLC

   INTERIM CONDENSED FINANCIAL STATEMENTS

   (all amounts in Sri Lankan Rupees thousands)

   Group - As at 30 June 2025 Rs.'000	Fair value through profit or loss	Amortised cost	Fair value through other comprehensive income	Total carrying amount	Level 1	Level 2	Level 3	Total Fair value
   Financial assets measured at fair value
   Investment fund	5,127	-	-	5,127	-	5,127	-	5,127
   	5,127	-	-	5,127	-	5,127	-	5,127
   Financial assets not measured at fair value
   Trade and other receivables	-	412,390	-	412,390	-		412,390	412,390
   Amounts due from related companies	-	348,184	-	348,184	-		348,184	348,184
   Short term investments	-	775,865	-	775,865	-	775,865	-	775,865
   Cash at banks and in hand	-	988,227	-	988,227	-	988,227	-	988,227
   	-	2,524,666	-	2,524,666	-	1,764,092	760,574	2,524,666
   Total financial assets	5,127	2,524,666	-	2,529,793	-	1,769,219	760,574	2,529,793
   Financial liabilities not measured at fair value
   Loans and borrowings	-	578,916	-	578,916	-	578,916	-	578,916
   Trade and other payables	-	2,262,035	-	2,262,035	-	-	2,262,035	2,262,035
   Bank overdrafts	-	475,320	-	475,320	-	475,320	-	475,320
   	-	3,316,271	-	3,316,271	-	1,054,236	2,262,035	3,316,271
   Total financial liabilities	-	3,316,271	-	3,316,271	-	1,054,236	2,262,035	3,316,271

   Group - As at 31 March 2025	Fair value through profit or loss	Amortised cost	Fair value through other comprehensive income	Total carrying amount	Level 1	Level 2	Level 3	Total Fair value
   Financial assets measured at fair value
   Investment fund	5,127	-	-	5,127	-	5,127	-	5,127
   	5,127	-	-	5,127	-	5,127	-	5,127
   Financial assets not measured at fair value
   Trade and Other receivables	-	351,404	-	351,404	-	351,404	-	351,404
   Amounts due from related company	-	326,304	-	326,304	-	326,304	-	326,304
   Short term investments	-	366,853	-	366,853	-	366,853	-	366,853
   Cash at banks and in hand	-	883,479	-	883,479	-	883,479	-	883,479
   	-	1,928,040	-	1,928,040	-	1,928,040	-	1,928,040
   Total financial assets	5,127	1,928,040	-	1,933,167	-	1,933,167	-	1,933,167
   Financial liabilities not measured at fair value
   Interest bearing borrowings	-	898,067	-	898,067	-	898,067	-	898,067
   Trade and other payables	-	1,193,412	-	1,193,412	-	1,193,412	-	1,193,412
   Lease Liabilities	-	471,976	-	471,976	-	471,976	-	471,976
   Bank overdrafts	-	314,933	-	314,933	-	314,933	-	314,933
   	-	2,878,388	-	2,878,388	-	2,878,388	-	2,878,388
   Total financial liabilities	-	2,878,388	-	2,878,388	-	2,878,388	-	2,878,388

   0012 WATAWALA PLANTATIONS PLC

   INTERIM CONDENSED FINANCIAL STATEMENTS

   (all amounts in Sri Lankan Rupees thousands)

   Company - As at 30 June 2025 Rs.'000	Fair value through profit or loss	Amortised cost	Fair value through other comprehensive income	Total carrying amount	Level 1	Level 2	Level 3	Total Fair value
   Financial assets measured at fair value
   Investment fund	5,127	-	-	5,127	-	5,127	-	5,127
   	5,127	-	-	5,127	-	5,127	-	5,127
   Financial assets not measured at fair value
   Trade and Other receivables	-	274,426	-	274,426	-		274,426	274,426
   Amounts due from related companies	-	348,184	-	348,184	-		348,184	348,184
   Short term investments		772,490		772,490		772,490		772,490
   Cash at banks and in hand	-	984,165	-	984,165	-	984,165	-	984,165
   	-	2,379,265	-	2,379,265	-	1,756,655	622,610	2,379,265
   Total financial assets	5,127	2,379,265	-	2,384,392	-	1,761,782	622,610	2,384,392
   Financial liabilities not measured at fair value
   Loans and borrowings		500,000		500,000			500,000	500,000
   Trade and other payables	-	2,144,740	-	2,144,740	-	-	2,144,740	2,144,740
   Bank overdrafts	-	9,573	-	9,573	-	-	9,573	9,573
   	-	2,654,313	-	2,654,313	-	-	2,654,313	2,654,313
   Total financial liabilities	-	2,654,313	-	2,654,313	-	-	2,654,313	2,654,313

   Company - As at 31 March 2025 Rs.'000	Fair value through profit or loss	Amortised cost	Fair value through other comprehensive income	Total carrying amount	Level 1	Level 2	Level 3	Total Fair value
   Financial assets measured at fair value
   Investment fund	5,127	-	-	5,127	-	5,127	-	5,127
   	5,127	-	-	5,127	-	5,127	-	5,127
   Financial assets not measured at fair value
   Trade and Other receivables	-	224,350	-	224,350	-	-	224,350	224,350
   Loan given to related Company		-		-			-	-
   Amounts due from related companies	-	553,519	-	553,519	-	-	553,519	553,519
   Short term investments		363,500		363,500		363,500		363,500
   Cash at banks and in hand	-	880,648	-	880,648	-	880,648	-	880,648
   	-	2,022,017	-	2,022,017	-	1,244,148	777,869	2,022,017
   Total financial assets	5,127	2,022,017	-	2,027,144	-	1,249,275	777,869	2,027,144
   Financial liabilities not measured at fair value
   Interest bearing borrowings		859,178	-	859,178	-	-	859,178	859,178
   Lease Liabilities		481,006	-	481,006	-	-	481,006	481,006
   Trade and other payables		1,096,512	-	1,096,512	-	-	1,096,512	1,096,512
   Bank overdrafts		69,885	-	69,885	-	-	69,885	69,885
   		2,506,581	-	2,506,581	-	-	2,506,581	2,506,581
   Total financial liabilities		2,506,581	-	2,506,581	-	-	2,506,581	2,506,581

   1. All amounts expressed are in Sri Lankan Rupees (LKR.) thousands unless otherwise stated.

   2. The Condensed Interim Financial Statements are not audited.

INTERIM CONDENSED FINANCIAL STATEMENTS

Shareholder details for the period ending 30 June 2025

1 Public Shareholdings

2 Directors' Shareholding as at 30 June 2025

The number of Shares held by the Board of Directors are as follows

3 Director / Acting Chief Executive Officers' Shareholding as at 30 June 2025

4 Twenty (20) largest shareholders

5

Stated capital is represented by share in issue as given below

Note 01

Watawala Plantations PLC has subdivided the ordinary shares of the Company, amounting to Two hundred three million, three hundred eight thousand, six hundred thirty-four (203,308,634) ("Pre-Subdivision Shares") into One billion, sixteen million, five hundred forty-three thousand, one hundred sixty-six (1,016,543,166) ordinary shares ("Post-Subdivision Shares") on the basis of one (01) Pre-Subdivision share held by each shareholder into five (5) ordinary shares.

6 Market Price & Trading Informations

INTERIM CONDENSED FINANCIAL STATEMENTS

Corporate Information

Name of the Company

Watawala Plantations PLC

Legal form

A public Company with limited liability registered under Companies Act No.17 of 1982 and re-registered under the Companies Act No.07 of 2007 and quoted on the Colombo Stock Exchange.

Date of incorporation

18 June 1992

Registration No

PQ 65

Accounting Year

31 March

Directors M R Mihular A D Cabraal

S G Sathasivam V Govindasamy M S Mawzoon

H D Abeywickrama

M R Rao

A Herath

M T Siddique

Acting Chief Executive Officer

S G Sathasivam

Secretaries & Registrars

Corporate Services (Pvt) Ltd.

216, De Saram Place, Colombo 10.

Auditors

KPMG (Chartered Accountants)

No: 32A, Sir Mohomad Macan Markar Mawatha,

Colombo 03.

Bankers

Standard Chartered Bank Ltd Hatton National Bank PLC Commercial Bank of Ceylon PLC DFCC Bank PLC

National Development Bank PLC

Lawyers

FJ & G de Saram (Attorneys-at-Law)

No 216, de Saram Place, Colombo 10

Nithya Partners

(Attorneys-at-Law)

97/A Galle Rd, Colombo 03

Registered Office

60, Dharmapala Mawatha,

Colombo 03, Sri Lanka

Tel: +94 114 702 400

E-mail: watawala@sunshineholdings.lk Web: https://www.watawalaplantations.lk