Watawala Plantations PlcCSELK: WATA.N0000

Interim condensed financial statements for the quarter ended 30th September 2024

Nov 11, 2024 at 2:13 PM UTC · Issued by Watawala Plantations PLC

WATAWALA PLANTATIONS PLC

INTERIM CONDENSED FINANCIAL STATEMENTS

Quarter ended 30 September, 2024

002 WATAWALA PLANTATIONS PLC

INTERIM CONDENSED FINANCIAL STATEMENTS

Management Review

Dear Shareholder,

Watawala Plantations PLC (CSE: WATA)

Watawala Plantations PLC posted a revenue of LKR 4,258 million at group level for the six months ending 30th September 2024 (1HFY25), down 7.4% YoY due to a 6.9% YoY decrease in revenue in the oil palm business and a 10.4% YoY decrease in revenue in the dairy business.

Profit after tax (PAT) at group level was LKR 984 million, down 39.6% YoY. The decrease in net profit was due to the increase in tax expenditure arising from the change in rate of tax and an impairment due to change in fair value of biological assets. The net assets per share at group level decreased to LKR 28.40 as of 30th September 2024 from LKR 30.44 as of 31st March 2024.

Oil Palm

Revenue was LKR 3,641 million in 1HFY25, down 6.9% YoY due to the drop in both price and volume compared to the same period last year. Cost of sales decreased 10.6% YoY primarily due to the lower fertilizer cost. Volumes were lower than last year same period primarily due to weather impact and industrial action due to the wage negotiations that were ongoing during the quarter.

Dairy

Revenue was LKR 617 million in 1HFY25, down 10.4% YoY due to a drop in both volume and price. Cost of sales reduced 20.6% YoY due to the reduction in cost of feed. The impairment on fair valuation of livestock of LKR 253 million impacted the results.

Cinnamon and other crops

The new cinnamon processing centre operated through the quarter with harvests improved from the over 100 hectares of cinnamon cultivated by the company. A net income of LKR 9 million was generated in 1HFY25 by other crops which includes cinnamon, tea, rubber, and coconut.

Outlook

Global palm oil prices have stabilized in 2024 despite marginal fluctuations. Meanwhile, the domestic palm oil price is expected to remain at similar levels during the next quarter.

The increase in the minimum daily wage rate to LKR 1,350 effective from 10th September 2024 will result in an increase in labour cost in upcoming quarters.

The Dairy operation is expected to sustain the milk yield and reduce feed cost due to better management of cattle feed.

Chairman

11 November 2024

WATAWALA PLANTATIONS PLC 003

INTERIM CONDENSED FINANCIAL STATEMENTS

Condensed Consolidated Income Statement

(all amounts in Sri Lankan Rupees thousands)

Revenue

Cost of sales

Gross profit

Other Income

Gain/(loss) on changes in fair value of biological assets

Administrative expenses

Selling and distribution expenses

Quarter ended 30 September	Six months ended 30 September
2024	2023	Change	2024	2023	Change
	%		%

2,192,677	2,240,798	-2%	4,258,035	4,598,165	-7%
(1,049,287)	(1,221,692)	-14%	(2,155,819)	(2,589,225)	-17%

1,143,390	1,019,106	12%	2,102,216	2,008,940	5%
29,288	64,725	-55%	33,437	66,966	-50%


(253,053)	(13,640)	1755%	(253,053)	(13,640)	1755%

(148,471)	(121,242)	22%	(269,547)	(260,117)	4%

(37,950)	(42,386)	-10%	(77,590)	(86,274)	-10%

Operating profits

Finance Income

Finance Costs

Net Finance Income

Profit before income tax

Income tax expenses

Profit for the period

Profit is attributable to:

Equity holders of the parent

Non-controlling interests

Basic Earning per share (LKR)

Consolidated Statement of other Comprehensive Income

Profit for the period

Other comprehensive income for the period (net of tax)

Total comprehensive income for the period

Total comprehensive income attributable to

Equity holders of the parent

Non-controlling interests

Total comprehensive income for the period

733,205

39,852

(27,441)

12,411

745,617

(343,211)

402,406

429,018

(26,612)

402,406

2.11

402,406

429,018

(26,612)

402,406

906,563

39,784

(19,987)

19,797

926,360

(48,004)

878,356

879,580

(1,224)

878,356

4.33

878,356

879,580

(1,224)

878,356

-19%	1,535,465
0%	88,999
37%	(50,593)
-37%	38,406
-20%	1,573,871
615%	(589,469)
-54%	984,402
	1,008,322
	(23,920)
	984,402
	4.96
-54%	984,402
	-
-54%	984,402
	1,008,322
	(23,920)
	984,402

1,715,875

81,982

(37,679)

44,303

1,760,178

(130,953)

1,629,225

1,634,849

(5,624)

1,629,225

8.04

1,629,225

1,634,849

(5,624)

1,629,225

-11%

34%

-13%

-11%

350%

-40%

004 WATAWALA PLANTATIONS PLC

INTERIM CONDENSED FINANCIAL STATEMENTS

Condensed Company Income Statement

(all amounts in Sri Lankan Rupees thousands)

Revenue

Cost of sales

Gross profit

Other Income

Gain/(loss) on changes in fair value of biological assets

Administrative expenses

Selling and distribution expenses

Impairment on Investment in subsidiary

Operating profits

Finance income

Finance costs

Net finance income

Profit before income tax

Income tax expenses

Quarter ended 30 September	Six months ended 30 September
2024	2023		Change %	2024		2023		Change %
1,901,511	1,892,704		0%			3,909,599		-7%
		3,640,760
(761,412)	(895,168)		-15%			(1,773,294)		-11%
		(1,585,369)

1,140,099	997,536		14%	2,055,391		2,136,305		-4%
22,648	64,811		-65%		(60,794)		-148%

		29,101
1,249	(5,795)		-122%			(5,795)		-122%
		1,249
(140,274)	(111,325)		26%			(246,984)		4%
		(256,714)
(37,950)	(42,386)		-10%			(86,274)		-10%
		(77,590)
(139,056)	-					-
			(139,056)

846,715	902,841		-6%	1,612,380		1,736,458		-7%
43,057	49,579		-13%			105,444		-9%

		95,699
(24,842)	(16,106)		54%			(30,836)		39%
		(42,863)

18,215	33,473		-46%	52,836		74,608		-29%


864,930	936,314		-8%	1,665,217		1,811,066		-8%
(337,543)	(45,817)		637%		(126,043)		362%

		(582,543)

Profit for the period

Basic Earning per share (LKR)

Statement of other Comprehensive Income

Profit for the period

Other comprehensive income for the period (net of tax)

Total comprehensive income for the period

Total comprehensive income attributable to

Equity holders of the parent

Total comprehensive income for the period

527,387

2.59

527,387

890,497

4.38

890,497

-41%	1,082,674
	5.33
-41%	1,082,674
	-
-41%	1,082,674
	1,082,674
	1,082,674

1,685,023

8.29

1,685,023

-36%

			WATAWALA PLANTATIONS PLC
		INTERIM CONDENSED FINANCIAL STATEMENTS 005
Condensed Statement of Financial Position
(all amounts in Sri Lankan Rupees thousands)
		Group	Company
		30.09.2024	31.03.2024	30.09.2024	31.03.2024
Assets
Non-current assets
Right to use of assets		429,613	359,850	433,710	363,888
Property, plant and equipment		2,628,169	2,555,913	1,298,582	1,212,638
Intangible assets		47,402	48,143	46,493	48,009
Bearer biological assets		2,353,492	2,422,978	2,309,017	2,374,489
Biological assets-Consumable		70,086	70,086	-	-
Biological assets -Livestock		949,852	1,165,589	-	-
Investment fund		18,903	51,393	18,903	51,393
Investment in subsidiaries		-	-	1,992,161	2,131,217
Total non-current assets		6,497,517	6,673,952	6,098,866	6,181,634
Current assets
Inventories		372,146	559,813	208,172	242,106
Biological assets-produce on bearer plants		72,115	70,867	72,115	70,867
Current tax assets		38,752	38,752	38,752	38,752
Trade and other receivables		307,221	334,734	223,363	234,758
Loan given to related Company		-	-	170,000	170,000
Amount due from related Companies		187,441	31,747	467,363	289,143
Short term investments		1,808,062	924,030	1,806,141	923,169
Cash and cash equivalents		423,206	797,421	388,145	774,475
Total current assets		3,208,943	2,757,364	3,374,050	2,743,270
Total assets		9,706,460	9,431,316	9,472,917	8,924,904
Equity and liabilities
Capital and reserves
Stated capital		511,848	511,848	511,848	511,848
Retained earnings		5,262,024	5,676,862	5,654,618	5,995,104
Equity attributable to equity holders of the company		5,773,872	6,188,710	6,166,466	6,506,952
Non controlling interests		184,691	208,611	-	-
Total equity		5,958,563	6,397,321	6,166,466	6,506,952
Liabilities
Non-current liabilities
Interest bearing borrowings		522,222	39,090	500,000	-
Lease Liabilities		480,446	401,592	490,247	411,297
Retirement benefit obligations			370,065
	370,507		323,149	322,284
Deferred income and capital grants		35,547	36,726	35,547	36,726
Deferred tax liability		994,272	978,449	730,521	715,956
Total non-current liabilities		2,402,994	1,825,922	2,079,463	1,486,263
Current liabilities
Interest bearing borrowings		34,355	89,511	-	-
Lease Liabilities		3,243	3,170	3,243	2,810
Trade and other payables		863,719	916,493	787,186	810,620
Amount due to related Companies		182	9,669	182	9,669
Current tax liabilities		442,046	108,590	436,377	108,590
Bank overdrafts		1,357	80,640	-	-
Total current liabilities		1,344,903	1,208,073	1,226,988	931,689
Total liabilities		3,747,897	3,033,995	3,306,451	2,417,952
Total equity and liabilities		9,706,460	9,431,316	9,472,917	8,924,904
Net Assets Per Share		28.40	30.44	30.33	32.01

It is certified that these financial statements have been prepared in compliance with the requirements of the Companies Act No 07 of 2007.

Dhammika Laksiri

Sector Financial Controller

The Board of Directors is responsible for the preparation and presentation of these financial statements. Approved and signed for and on behalf of Directors of Watawala Plantations PLC.

S.G Sathasivam	M R Mihular
Director	Chairman
11 November 2024
Colombo

006 WATAWALA PLANTATIONS PLC

INTERIM CONDENSED FINANCIAL STATEMENTS

Condensed Statement of changes in equity - Group

(all amounts in Sri Lankan Rupees thousands)

Stated Retained capital earnings

Total

Non controling interest

Total Equity

Balance at 1 April 2023

Profit for the period

Actuarial gain / (loss) on retirement benefit obligations

Deferred tax on actuarial loss on retirement benefit obligations

Total comprehensive income for the period

511,848 5,768,337 6,280,185

- 2,358,770 2,358,770

-	(14,807)	(14,807)
-	4,266	4,266

- 2,348,229 2,348,229

222,804

(14,034)

(198)

(14,193)

6,502,989

2,344,736

(15,005)

4,305

2,334,036

Transactions with owners of the Company, recognised directly in equity

Dividends paid

- (2,439,704) (2,439,704)

(2,439,704)

Total transactions with owners	-	(2,439,704)	(2,439,704)	-	(2,439,704)
Balance at 31 March 2024	511,848	5,676,862	6,188,710	208,611	6,397,321

Balance at 1 April 2024

Profit/(loss) for the period

511,848

5,676,862

6,188,710

- 1,008,322 1,008,322

208,611

(23,920)

6,397,321

984,402

Total comprehensive income /(loss) for the period

- 1,008,322 1,008,322

(23,920) 984,402

Transactions with owners of the Company, recognised directly in equity

Dividends paid

Total transactions with owners

- (1,423,160) (1,423,160)

(1,423,160)
(1,423,160)

Balance at 30 September 2024

511,848 5,262,024 5,773,872

184,691 5,958,563

WATAWALA PLANTATIONS PLC 007

INTERIM CONDENSED FINANCIAL STATEMENTS

Condensed Statement of changes in equity - Company

(all amounts in Sri Lankan Rupees thousands)

	Stated	Retained	Total
	capital	earnings
Balance at 1 April 2023	511,848	6,040,082	6,551,930
Profit for the period	-	2,403,854	2,403,854
Actuarial loss on retirement benefit obligations	-	(13,040)	(13,040)
Deferred tax on actuarial loss on retirement benefit obligations	-	3,912	3,912
Total comprehensive income for the period	-	2,394,726	2,394,726

Transactions with owners of the Company, recognised directly in equity
Dividends paid	-	(2,439,704)	(2,439,704)
Total transactions with owners	-	(2,439,704)	(2,439,704)
Balance at 31 March 2024	511,848	5,995,104	6,506,952

Balance at 1 April 2024

Profit for the period

511,848

5,995,104

1,082,674

6,506,952

1,082,674

Total comprehensive income for the period	-	1,082,674	1,082,674

Transactions with owners of the Company, recognised directly in equity
Dividends paid	-	(1,423,160)	(1,423,160)
Total transactions with owners	-	(1,423,160)	(1,423,160)

Balance at 30 September 2024

511,848

5,654,618

6,166,466

008 WATAWALA PLANTATIONS PLC

INTERIM CONDENSED FINANCIAL STATEMENTS

Condensed Consolidated Statement of cash flows

(all amounts in Sri Lankan Rupees thousands)

For the period ended 30 September

Cash flows from operating activities

Profit before taxation

Adjustments for:

Depreciation and amortisation

Provision for retirement benefit obligations Loss on fair valuation of livestock Impairment on investment in subsidiary Gain/(loss) on fair valuation of livestock Income from investment fund Amortisation of capital grants

Net finance costs

Profit before working capital changes

Changes in working capital

Inventories
Biological assets-produce on bearer plants
Trade and other receivables
Amount due from related companies
Amount due to related companies
Trade and other payables

Cash generated from operations

Interest paid

Interest received

Income Tax paid

Retirement benefit obligations paid

Net cash generated from operating activities

Cash flows from investing activities

Additions to property, plant and equipment Addition to Intangible assets

Additions to Bearer biological assets

Proceeds from disposal of biological assets (Livestock) Proceeds from sale of property, plant and equipment Investment made through short/long term investments Withdrawals made through short/long term investments Additions to livestock

Net cash used in investing activities

Cash flows from financing activities

Dividends paid

Loans obtained during the year

Repayment of borrowings

Repayment of lease liabilities

Net cash used in financing activities

Increase / (Decrease) in cash and cash equivalents

Movement in cash and cash equivalents

At the beginning of period

Increase / (Decrease) for the period

At end of period

Cash and cash equivalents

Bank overdrafts

At end of period

Group		Company
2024	2023	2024	2023
1,573,871	1,760,178	1,665,217	1,811,066
277,438	197,180	359,336	158,770
17,992	15,230	17,208	12,910
50,097	7,845	-	-
-	-	139,056	-
253,053	-	-	-
(510)	(510)	(510)	(510)
(1,179)	(1,179)	(1,179)	(1,179)
(38,406)	(44,303)	(52,836)	(74,608)
2,132,356	1,934,441	2,126,292	1,906,449
187,667	204,302	33,935	64,689
(1,248)	5,795	(1,248)	5,795
27,513	80,994	11,396	120,437
(155,694)	(182,276)	(178,220)	(197,427)
(9,487)	(818)	(9,486)	(818)
(14,022)	(58,490)	15,314	(60,775)
2,167,085	1,983,948	1,997,982	1,838,350
(20,884)	(8,073)	(13,610)	(1,260)
88,999	81,982	95,699	105,444
(201,438)	(50,735)	(201,438)	(49,956)
(17,733)	(21,289)	(16,343)	(16,417)
(151,055)	1,885	(135,691)	37,811
2,016,030	1,985,833	1,862,291	1,876,161
(336,024)	(67,611)	(435,674)	(55,375)
(4,153)	(6,060)	(3,230)	(5,545)
(12,260)	(22,114)	(11,687)	(22,271)
	29,257	-	-
4,356	-	4,356	-
(884,032)	(431,319)	(882,972)	(410,825)
33,000	9,000	33,000	9,000
(87,413)	(111,844)	-	-
(1,286,527)	(600,691)	(1,296,207)	(485,016)
(1,423,160)	(813,235)	(1,423,160)	(813,235)
500,000	100,000	500,000	-
(71,567)	(11,606)	-	-
(29,709)	(30,658)	(29,253)	(30,658)
(1,024,436)	(755,499)	(952,413)	(843,893)
(294,933)	629,643	(386,329)	547,252
716,781	797,544	774,475	853,193
(294,933)	629,643	(386,329)	547,252
421,848	1,427,187	388,146	1,400,445
423,206	1,432,805	388,145	1,400,445
(1,357)	(5,618)	-	-
421,848	1,427,187	388,145	1,400,445

Segmental Analysis - Group

(all amounts in Sri Lankan Rupees thousands)

	Palm Oil	Dairy
Sixmonthsended30September	2024	2023	2024	2023

WATAWALA PLANTATIONS PLC 009 INTERIM CONDENSED FINANCIAL STATEMENTS

Others		Inter Segment	Total
2024		2023		2023	2023
	2024	2024

Revenue

3,640,760 3,909,599

617,275 688,686

(120) 4,258,035

4,598,165

Costofsales

(1,585,369) (1,773,294)

(629,332) (792,825)

59,144 (23,106) (2,155,557) (2,589,225)

Grossprofit/(loss)

2,055,391 2,136,305

(12,057) (104,139)

59,144 (23,226) 2,102,478

2,008,940

Otheroperatingincome/(expenses) Administrativeexpenses

OtherIncome-Gain(Loss)OnFairValuation -Livestock's

7,019 47,731 61,970

(255,466) (246,984) (12,832)

- - (253,053)

97,289

(13,733)

22,082	(114,320)	(59,744)
-
-	600
-
-	-

22,626 31,327

600 (267,698) - (253,053)

53,326

(260,117)

Sellinganddistributionexpenses(SSCL)

ImpairmentonInvestmentinsubsidiary

(73,260)

(83,753)

(4,330)
(139,056)

(2,521)	-
-
139,056

(77,590)

(86,274)

Operatingprofit/(loss)

1,733,685 1,853,299 (215,972) (20,583) (121,304) (116,841) 139,056

- 1,535,465 1,715,875

Netfinanceincome/(expenses)

52,836

74,608 (14,430) (30,305)

38,406

44,303

Profit/(Loss)beforetax

Taxexpenses

1,786,521 1,927,907 (230,402) (50,888) (121,304) (116,841) 139,056

(576,129)

(120,522)

(6,926)

(4,910)

(6,414)

(5,521)

- 1,573,871 1,760,178

(589,469)

(130,953)

Netprofit/(loss)

1,210,392 1,807,385 (237,328)

(55,798) (127,718) (122,362) 139,056

984,402

1,629,225

Segmental Analysis - Group

(all amounts in Sri Lankan Rupees thousands)

Quarterended30September

Palm Oil

2024 2023

Dairy

2024 2023

Other

2024 2023

Inter Segment

2024 2023

Total

2024 2023

Revenue

Costofsales

1,901,510	1,892,704	291,126	348,214
(761,412)
(895,168)	(291,657)	(385,563)

4,044

2,192,677 2,240,798
59,039 (1,049,025) (1,221,692)

Grossprofit/(loss)

Otheroperatingincome/(expenses) Administrative expenses

Other Income - Gain (Loss) On Fair Valuation-Livestock's

1,140,098	997,536	(531)	(37,349)
3,382	47,731	8,915	51,588
(139,026)	(111,325)	(7,896)	(10,517)
-	-	(253,053)	-

19,266

11,285

4,085

(4,385)

300

58,919	1,143,652	1,019,106
(59,519)	27,178	51,085
600	(146,622)	(121,242)
-	(253,053)	-

Sellinganddistributionexpenses/(SSCL) ImpairmentonInvestmentinsubsidiary

(36,797)	(40,894)
-
-

(1,153)

(139,056)

(1,492)

139,056

(37,950)	(42,386)
-
-

Operatingprofit

Netfinanceincome

967,658 893,048 (252,565)

18,214

33,473

(5,803)

3,722 (120,943)

(13,676)

9,793

139,056

733,206 906,563

12,411

19,797

Profit/(loss)beforetax

985,872

926,521

(258,368)

(9,954) (120,943)

9,793

139,056

745,617

926,360

Taxexpenses

Netprofit/(loss)

-	-
(331,974)
(43,030)

653,898 883,491

(5,668)

(264,036)

(2,187)

(12,141)

(5,569)

(126,512)

(2,787)

7,006

139,056

-	-
(343,211)
(48,004)

402,406 878,356

0010 WATAWALA PLANTATIONS PLC

INTERIM CONDENSED FINANCIAL STATEMENTS

Segmental Analysis - Company

(all amounts in Sri Lankan Rupees thousands)

Sixmonthsended30September

Palm Oil
2024	2023

Others
2024	2023

Total
2024	2023

Revenue

Cost of sales

Gross profit

3,640,760	3,909,599	-	-	3,640,760	3,909,599
(1,585,369)	(1,773,294)	-	-	(1,585,369)	(1,773,294)
2,055,391
2,136,305	-	-	2,055,391	2,136,305

Other operating income/(expenses)

Administrative expenses

Selling and distribution expenses/(SSCL)

Impairment on investment in subsidiary

7,019

(255,466)

(73,260)

47,731

(246,984)

(83,753)

-	-
22,082	(114,320)
-	-
(4,330)	(2,521)
(139,056)	-

29,101

(255,466)

(77,590)

(139,056)

(66,589)

(246,984)

(86,274)

Operatingprofit/(loss)

Netfinanceincome

1,733,685

52,836

1,853,299	(121,304)	(116,841)
74,608	-	-

1,612,380

52,836

1,736,458

74,608

Profit/(loss) before tax

Tax expenses

Net profit/(loss)

1,786,521

(576,129)

1,210,392

1,927,907	(121,304)	(116,841)
(120,522)	(6,414)	(5,521)
1,807,385	(127,718)	(122,362)

1,665,217

(582,543)

1,082,674

1,811,066

(126,043)

1,685,023

Segmental Analysis - Company

(all amounts in Sri Lankan Rupees thousands)

Threemonthsended30September

Palm Oil

2024 2023

Others

2024 2023

Total

2024 2023

Revenue

Cost of sales

1,901,510

(761,412)

1,892,704

(895,168)

1,901,510

(761,412)

1,892,704

(895,168)

Gross profit

Other operating income

Administrative expenses

Selling and distribution expenses/(SSCL)

Impairment on investment in subsidiary

1,140,098

3,383

(139,026)

(36,797)

997,536	-
47,731	19,266
(111,325)	-
(40,894)	(1,153)
-	(139,056)

11,285

(1,492)

1,140,098

22,649

(139,026)

(37,950)

(139,056)

997,536

59,016

(111,325)

(42,386)

Operatingprofit/(loss)

Netfinanceincome

967,658

18,214

893,048 (120,943)

33,473

9,793

846,715

18,214

902,841

33,473

Profit/(loss) before tax

985,872

926,521

(120,943)

9,793

864,930

936,314

Tax expenses

Net profit/(loss)

(331,974)

653,898

(43,030)

883,491

(5,569)

(126,512)

(2,787)

7,006

(337,543)

527,387

(45,817)

890,497

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