WATAWALA PLANTATIONS PLC
INTERIM CONDENSED FINANCIAL STATEMENTS
Quarter ended 30 June, 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 2,065 million at group level for the quarter ended 30 th June 2024 (1Q FY 24/25), down 12.4% YoY. Palm oil sector revenue was LKR 1,739 million, down 13.8% YoY due to the drop in price and sales volume.
Profit after tax (PAT) at group level was LKR 582 million, 22.5% below the same period last year. The decrease in net profit margin was mainly due to the increase in tax expenditure arising from the change in rate of tax.
The net assets per share decreased to LKR 26.29 as at 30 th June 2024 from LKR 30.44 as at 31 st March 2024 due to the final dividend declared of LKR 7.00 per share for FY 23/24 during the quarter which was greater than the profit for the period.
Watawala Dairy Limited (WDL)
Revenue was LKR 326.1 million for 1Q FY24/25, down 4.2% YoY. Cost of sales reduced
17.1% YoY mainly due to the reduction in cost of feed and company recorded a net profit of LKR 26.7 million for 1Q FY24/25.
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.
Watawala Dairy is expected to sustain the milk yield due to better management and stockholding of cattle feed. The management is pursuing numerous initiatives to further reduce cost.
Reyaz Mihular
Chairman
1 August 2024
WATAWALA PLANTATIONS PLC 003
INTERIM CONDENSED FINANCIAL STATEMENTS
Condensed Consolidated Income Statement
(all amounts in Sri Lankan Rupees thousands)
Quarter ended 30 June
Revenue
Cost of sales
Gross profit
Other income
Administrative expenses
Selling and distribution expenses (SSCL)
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
2024
2,065,358
(1,106,532)
958,826
4,149
(121,076)
(39,640)
802,259
49,147
(23,152)
25,995
828,254
(246,258)
581,996
579,304
2,692
581,996
2.85
581,996
-
581,996
579,304
2,692
581,996
2023
2,357,367
(1,367,533)
989,834
2,241
(138,875)
(43,888)
809,312
42,198
(17,692)
24,506
833,818
(82,949)
750,869
755,269
(4,400)
750,869
3.71
750,869
-
750,869
755,269
(4,400)
750,869
Change %
-12%
-19%
-3%
85%
-13%
-10%
-1%
16%
31%
6%
-1%
197%
-22%
-22%
-22%
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/(expenses)
Administrative expenses
Selling and distribution expenses (SSCL)
Operating profits
Finance income
Finance costs
Net finance income
Profit before income tax
Income tax expenses
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
Other comprehensive income for the period (net of tax)
Total comprehensive income for the period
Quarter ended 30 June
2024 | 2023 | Change % |
1,739,250 | 2,016,895 | -14% |
(823,957) | (878,126) | -6% |
915,293 | 1,138,769 | -20% |
6,453 | (125,605) | n/a |
(116,440) | (135,659) | -14% |
(39,640) | (43,888) | -10% |
765,666 | 833,617 | -8% |
52,642 | 55,865 | -6% |
(18,020) | (14,730) | 22% |
34,622 | 41,135 | -16% |
800,288 | 874,752 | -9% |
(245,000) | (80,226) | 205% |
555,288 | 794,526 | -30% |
2.73 | 3.91 | |
555,288 | 794,526 | -30% |
- | - | |
555,288 | 794,526 | -30% |
555,288 | 794,526 | -30% |
- | - | |
581,288 | 750,288 | -30% |
WATAWALA PLANTATIONS PLC | ||||||||||
INTERIM CONDENSED FINANCIAL STATEMENTS 005 | ||||||||||
Condensed Statement of Financial Position | ||||||||||
(all amounts in Sri Lankan Rupees thousands) | ||||||||||
Group | Company | |||||||||
30.06.2024 | 31.03.2024 | 30.06.2024 | 31.03.2024 | |||||||
Assets | ||||||||||
Non-current assets | ||||||||||
Right to use of assets | 434,772 | 359,850 | 438,870 | 363,888 | ||||||
Property, plant and equipment | 2,615,567 | 2,555,913 | 1,277,236 | 1,212,638 | ||||||
Intangible assets | 46,413 | 48,143 | 46,346 | 48,009 | ||||||
Bearer biological assets | 2,391,016 | 2,422,978 | 2,342,527 | 2,374,489 | ||||||
Biological assets-Consumable | 70,086 | 70,086 | - | - | ||||||
Biological assets -Livestock | 1,182,486 | 1,165,589 | - | - | ||||||
Investment fund | 18,648 | 51,393 | 18,648 | 51,393 | ||||||
Investment in subsidiaries | - | - | 2,131,217 | 2,131,217 | ||||||
Total non-current assets | 6,758,988 | 6,673,952 | 6,254,844 | 6,181,634 | ||||||
Current assets | - | - | ||||||||
Inventories | 444,885 | 559,813 | 218,947 | 242,106 | ||||||
Biological assets-produce on bearer plants | 70,867 | 70,867 | 70,867 | 70,867 | ||||||
Current tax assets | 38,752 | 38,752 | 38,752 | 38,752 | ||||||
Trade and other receivables | 356,827 | 334,734 | 259,638 | 234,758 | ||||||
Loan given to related Company | - | - | 170,000 | 170,000 | ||||||
Amount due from related Companies | 232,049 | 31,747 | 491,127 | 289,143 | ||||||
Short term investments | 1,506,670 | 924,030 | 1,504,772 | 923,169 | ||||||
Cash and cash equivalents | 723,125 | 797,421 | 687,799 | 774,475 | ||||||
Total current assets | 3,373,175 | 2,757,364 | 3,441,902 | 2,743,270 | ||||||
Total assets | 10,132,163 | 9,431,316 | 9,696,746 | 8,924,904 | ||||||
Equity and liabilities | - | - | ||||||||
Capital and reserves | ||||||||||
Stated capital | 511,848 | 511,848 | 511,848 | 511,848 | ||||||
Retained earnings | 4,833,006 | 5,676,862 | 5,127,232 | 5,995,104 | ||||||
Equity attributable to equity holders of the company | 5,344,854 | 6,188,710 | 5,639,080 | 6,506,952 | ||||||
Non controlling interests | 211,303 | 208,611 | - | - | ||||||
Total equity | 5,556,157 | 6,397,321 | 5,639,080 | 6,506,952 | ||||||
Liabilities | - | |||||||||
Non-current liabilities | ||||||||||
Interest bearing borrowings | 30,556 | 39,090 | - | - | ||||||
Lease Liabilities | 480,921 | 401,592 | 490,626 | 411,297 | ||||||
Retirement benefit obligations | 370,065 | |||||||||
371,391 | 324,285 | 322,284 | ||||||||
Deferred income and capital grants | 36,137 | 36,726 | 36,137 | 36,726 | ||||||
Deferred tax liability | 985,707 | 978,449 | 721,956 | 715,956 | ||||||
Total non-current liabilities | 1,904,712 | 1,825,922 | 1,573,004 | 1,486,263 | ||||||
Current liabilities | ||||||||||
Interest bearing borrowings | 34,534 | 89,511 | - | - | ||||||
Lease Liabilities | 3,603 | 3,170 | 3,243 | 2,810 | ||||||
Trade and other payables | 2,278,306 | 916,493 | 2,180,865 | 810,620 | ||||||
Amount due to related Companies | - | 9,669 | - | 9,669 | ||||||
Current tax liabilities | 300,554 | 108,590 | 300,554 | 108,590 | ||||||
Bank overdrafts | 54,297 | 80,640 | - | - | ||||||
Total current liabilities | 2,671,294 | 1,208,073 | 2,484,662 | 931,689 | ||||||
Total liabilities | 4,576,006 | 3,033,995 | 4,057,666 | 2,417,952 | ||||||
Total equity and liabilities | 10,132,163 | 9,431,316 | 9,696,746 | 8,924,904 |
Net Assets Per Share
26.29 | 30.44 | 27.74 | 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.
V Govindasamy | M R Mihular |
Director | Chairman |
1 August 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 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 6,502,989
(14,034) 2,344,736
-
(15,005)
39 4,305
(14,193) 2,334,036
Transactions with owners of the Company, recognised directly in equity
Effect on changes in effective holding in the subsidiary
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 for the period
511,848 5,676,862
- 579,304
6,188,710
579,304
208,611
2,692
6,397,321
581,996
Total comprehensive income for the period
579,304
579,304
2,692
581,996
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)
(1,423,160)
- (1,423,160)
Balance at 30 June 2024
511,848 4,833,006 5,344,854
211,303 5,556,157
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
555,288
6,188,710
555,288
Total comprehensive income for the period | - | 555,288 | 555,288 |
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 June 2024
511,848
5,127,232
5,639,080
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 June
Cash flows from operating activities
Profit before taxation
Adjustments for:
Depreciation and amortisation
Provision for retirement benefit obligations Income from investment fund Amortisation of capital grants
Net finance costs
Profit before working capital changes
Changes in working capital
- Inventories
- 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) 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
Loans obtained during the year
Repayment of borrowings
Repayment of lease liabilities
Net cash used in financing activities
Decrease in cash and cash equivalents
Movement in cash and cash equivalents
At the beginning of period
Increase for the period
At end of period
Cash and cash equivalents
Bank overdrafts
At end of period
Group | Company | ||
2024 | 2023 | 2024 | 2023 |
828,254 | 833,818 | 800,288 | 874,752 |
101,025 | 100,026 | 81,951 | 81,137 |
9,479 | 7,930 | 9,087 | 6,511 |
(255) | (255) | (255) | (255) |
(590) | (590) | (590) | (590) |
(25,995) | (24,506) | (34,622) | (41,135) |
911,918 | 916,423 | 855,859 | 920,420 |
114,928 | 127,342 | 23,159 | (7,310) |
(22,093) | 134,379 | (24,880) | 156,709 |
(200,302) | (5,664) | (201,984) | (26,312) |
(9,669) | (818) | (9,669) | (818) |
(61,346) | (38,457) | (52,915) | 14,714 |
733,436 | 1,133,205 | 589,570 | 1,057,403 |
(5,519) | (3,074) | (387) | (104) |
49,147 | 42,198 | 52,642 | 55,865 |
(47,036) | (273) | (47,036) | - |
(8,153) | (6,795) | (7,085) | (5,027) |
(11,561) | 32,056 | (1,866) | 50,734 |
721,875 | 1,165,261 | 587,704 | 1,108,137 |
(109,236) | (35,709) | (95,232) | (35,359) |
(846) | (2,790) | (846) | (2,275) |
(11,687) | (10,343) | (11,687) | (10,795) |
21,086 | 11,609 | - | - |
(582,640) | - | (581,603) | - |
33,000 | 8,522 | 33,000 | 8,522 |
(37,982) | (52,918) | - | - |
(688,305) | (81,629) | (656,368) | (39,907) |
- | 100,000 | - | - |
(63,511) | (3,027) | - | - |
(18,012) | (15,329) | (18,012) | (15,329) |
(81,523) | 81,644 | (18,012) | (15,329) |
(47,953) | 1,165,276 | (86,676) | 1,052,901 |
716,781 | 797,544 | 774,475 | 853,193 |
(47,953) | 1,165,276 | (86,676) | 1,052,901 |
668,828 | 1,962,820 | 687,799 | 1,906,094 |
723,125 | 1,963,505 | 687,799 | 1,906,094 |
(54,297) | (685) | - | - |
668,828 | 1,962,820 | 687,799 | 1,906,094 |
Segmental Analysis - Group
(all amounts in Sri Lankan Rupees thousands)
Palm Oil | Dairy | |||||
Quarterended30June | 2024 | 2023 | 2024 | 2023 | ||
WATAWALA PLANTATIONS PLC 009 INTERIM CONDENSED FINANCIAL STATEMENTS
Others | Inter Segment | Total | |||||
2024 | 2023 | 2023 | 2023 | ||||
2024 | 2024 | ||||||
Revenue
1,739,250 2,016,895
326,149
340,472
-
-
(41)
- 2,065,358 2,357,367
Costofsales
(823,957)
(878,126)
(337,675) (407,262)
-
-
55,100
(82,145) (1,106,532) (1,367,533)
Grossprofit/(loss)
915,293 1,138,769
(11,526) (66,790)
-
- 55,059 (82,145) 958,826 989,834
Otheroperatingincome/(expenses) Administrativeexpenses
Sellinganddistributionexpenses(SSCL)
3,637 -
(116,440) (135,659)
(36,463) (42,859)
53,055
(4,936)
-
45,701
(3,216)
- | - | ||||
2,816 | (125,605) | (55,359) | 82,145 | 4,149 | 2,241 |
- | - | 300 | - | (121,076) | (138,875) |
(3,177) | (1,029) | - | (39,640) | (43,888) |
Operatingprofit/(loss)
766,027
960,251
36,593 (24,305)
(361) (126,634)
- - 802,259 809,312
-
-
Netfinanceincome/(expenses)
34,622
41,135 (8,627) (16,629)
-
-
-
-
25,995
24,506
Profit/(Loss)beforetax
800,649 1,001,386
27,966 (40,934)
(361) (126,634)
-
- 828,254 833,818
-
-
Taxexpenses
Netprofit/(loss)
(244,155) (77,492)
556,494 923,894
(1,258) | (2,723) | (845) | (2,734) |
26,708 (43,657) (1,206) (129,368)
-
-
- (246,258) (82,949)
- 581,996 750,869
Segmental Analysis - Company
(all amounts in Sri Lankan Rupees thousands)
Quarterended30June
Palm Oil
2024 2023
Others
2024 2023
Total
2024 2023
Revenue
Costofsales
1,739,250 2,016,895
(823,957) (878,126)
-
-
- 1,739,250
- (823,957)
2,016,895
(878,126)
Grossprofit
Otheroperatingincome/(expenses) Administrativeexpenses
Sellinganddistributionexpenses(SSCL)
915,293 | 1,138,769 | - | - | 915,293 | 1,138,769 |
3,637 | - | 2,816 | (125,605) | 6,453 | (125,605) |
(116,440) | (135,659) | - | - | (116,440) | (135,659) |
(36,463) | (42,859) | (3,177) | (1,029) | (39,640) | (43,888) |
Operatingprofit/(loss)
766,027 960,251
(361) (126,634)
765,666
833,617
Netfinanceincome
Profit/(loss)beforetax
- | - | ||||
34,622 | |||||
41,135 | - | - | 34,622 | 41,135 | |
800,649 | |||||
1,001,386 | (361) | (126,634) | 800,288 | 874,752 |
Taxexpenses
Netprofit/(loss)
- | - | ||||
(244,155) | |||||
(77,492) | (845) | (2,734) | (245,000) | (80,226) |
556,494 923,894 (1,206) (129,368) 555,288 794,526
0010 WATAWALA PLANTATIONS PLC
INTERIM CONDENSED FINANCIAL STATEMENTS
Notes to the Condensed Interim Financial Statements
01. 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.
02. 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 2024 comprised the Company and subsidiary Watawala Dairy Ltd.
03. Approval of financial statements
The Condensed Interim Financial Statements of the Group and the Company for the period ended 30 June 2024 were authorised to be published by the Board of Directors on 1 August 2024.
04. 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).
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 2023/24, except these Condensed Interim Financial Statements have been prepared in compliance with the requirements of the Sri Lanka Accounting Standard - LKAS 34 on 'Interim Financial Reporting. Previous year figures and phrases have been re-arranged wherever necessary to conform to the current presentation.
05. 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.
06. Events after reporting date
No circumstance has arisen since the reporting date which would require adjustment to or disclosure in the interim financial statements.
07. There has been no change in the contingent liabilities at the quarter end as compared to 31 March 2024.
08. Fair value adjustments are done bi-annually as per the policy of the Company. Hence, Condensed Interim Financial State- ments reflected any such changes.
09. 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 instru- ments; 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.
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