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TAFL annual has been uploaded to CSE site.
Three Acre Farms has
made a big turn-around in
2010, after two years of
continuous losses in 2008 & 2009.
This would not have been possible
without the dedication and perseverance of
our staff, guidance from our management, and
most importantly the trust that was placed in us by
all our stakeholders.
We will continue to increase our competiveness in the coming
years through facility upgrades, human resource development and
farm productivity improvement programs; to strengthen our position
as a market leader in Sri Lanka.
The road ahead can be challenging, however, with the support and the
trust from all our stakeholders we will strive to succeed.
*******************************************************
Chairman & Chief Executive Offi cer’s Review :
Dear Shareholder,
It is with great pleasure that I present you
the Annual Report and the audited fi nancial
statements of Th ree Acre Farms PLC (TAF)
and its subsidiaries for the fi nancial year
ended 31 December 2010 inviting you for
the 49 Annual General Meeting, which
will be held on 21 April 2011 at the ICASL
Auditorium, 30A, Malalasekara Mawatha,
Colombo 07 at 11.30 a.m.
Th e year under review saw a surge in the
Company profi t, mainly contributed by the
high demand and good price of day-oldchick
in the second half of the year. Th e
management has taken necessary steps
to improve the effi ciency of breeder farms
throughout the year 2010. During the year
TAF continued to upgrade commercial farm
facilities with modern environmentally
controlled farm houses.
Th e industry entered into a cycle of low
demand for poultry products in 2009, due
to the impoverished purchasing power and
lack of confi dence to the business, where
major players were forced to scale down their
operations to reduce losses. Consequently,
when market demand normalized, the local
production was not suffi cient to meet the
requirement for layer chicks and chicken
meat during the fi rst half of 2010. Th is is due
to the long lead time (minimum 6 months)
required to grow the parental stock in order
to increase day-old-chick production, hence
a stable business environment is critical for
the development of poultry industry. TAF
responded to these challenges by taking
swift and decisive steps to strike a balance
between supply and demand in production
planning.
Meanwhile with the market recovery,
the domestic per capita income has also
increased to US$ 2,400 improving the
purchasing power of Sri Lankans. Expenses
on food play a key role in all these purchases.
Currently consumption of chicken meat for
Sri Lanka is approximately 5Kg per person.
With the fast development and change in
lifestyle as well as the purchasing power,
we expect the consumption will increase to
more than 8 Kg per capita within the next
fi ve years, which is highly favorable for the
local poultry industry in general and TAF in
particular.
It is noteworthy that amongst the few
challenges mentioned above, TAF was
able to continue its journey as the market
leader in the poultry breeding in Sri Lanka
maintaining its competitiveness. In doing so
the excellence performance demonstrated
by the TAF operations team was highly
commendable.
With Sri Lankan economy predicted to
reach over 9% p.a. during the next few
years TAF is optimistic about the growth
potential. We hope that infrastructure
development will continue as expected
during 2011 allowing access to new markets
throughout the country while creating
necessary background for new farms to be
established, especially in the North and East
of the island.
Financial Review
Our fi nancial accomplishments for the
year under review recorded revenue of Rs.
1,157.78 million, which is an increase of
38% against Rs. 836.46 million in 2009.
Your company has reported a net profi t after
tax of Rs. 229.08 million as compared to the
net loss of Rs. 191.86 million reported in
2009.
Dividends
As we are planning for the capital investment
in year 2011, the Board of Directors
believes it would be prudent to refrain from
declaring a dividend for the fi nancial year
ended 31 December 2010. We trust our
decision will be understood and appreciated
by shareholders as being one that will bode
well for the Group in the future.
Acknowledgements
Finally on behalf of the Board of Directors
I take this opportunity to thank you for
the trust placed on TAF as its valued
shareholders. I would also like to express
my sincere appreciation to our dedicated
employees and customers for their
determination during 2010 and the
continued support given to meet the high
growth standards. I wish to convey to all
our shareholders and investors the future is
bright for TAF and lot of potential waits to
be exploited in the coming years.
Three Acre Farms has
made a big turn-around in
2010, after two years of
continuous losses in 2008 & 2009.
This would not have been possible
without the dedication and perseverance of
our staff, guidance from our management, and
most importantly the trust that was placed in us by
all our stakeholders.
We will continue to increase our competiveness in the coming
years through facility upgrades, human resource development and
farm productivity improvement programs; to strengthen our position
as a market leader in Sri Lanka.
The road ahead can be challenging, however, with the support and the
trust from all our stakeholders we will strive to succeed.
*******************************************************
Chairman & Chief Executive Offi cer’s Review :
Dear Shareholder,
It is with great pleasure that I present you
the Annual Report and the audited fi nancial
statements of Th ree Acre Farms PLC (TAF)
and its subsidiaries for the fi nancial year
ended 31 December 2010 inviting you for
the 49 Annual General Meeting, which
will be held on 21 April 2011 at the ICASL
Auditorium, 30A, Malalasekara Mawatha,
Colombo 07 at 11.30 a.m.
Th e year under review saw a surge in the
Company profi t, mainly contributed by the
high demand and good price of day-oldchick
in the second half of the year. Th e
management has taken necessary steps
to improve the effi ciency of breeder farms
throughout the year 2010. During the year
TAF continued to upgrade commercial farm
facilities with modern environmentally
controlled farm houses.
Th e industry entered into a cycle of low
demand for poultry products in 2009, due
to the impoverished purchasing power and
lack of confi dence to the business, where
major players were forced to scale down their
operations to reduce losses. Consequently,
when market demand normalized, the local
production was not suffi cient to meet the
requirement for layer chicks and chicken
meat during the fi rst half of 2010. Th is is due
to the long lead time (minimum 6 months)
required to grow the parental stock in order
to increase day-old-chick production, hence
a stable business environment is critical for
the development of poultry industry. TAF
responded to these challenges by taking
swift and decisive steps to strike a balance
between supply and demand in production
planning.
Meanwhile with the market recovery,
the domestic per capita income has also
increased to US$ 2,400 improving the
purchasing power of Sri Lankans. Expenses
on food play a key role in all these purchases.
Currently consumption of chicken meat for
Sri Lanka is approximately 5Kg per person.
With the fast development and change in
lifestyle as well as the purchasing power,
we expect the consumption will increase to
more than 8 Kg per capita within the next
fi ve years, which is highly favorable for the
local poultry industry in general and TAF in
particular.
It is noteworthy that amongst the few
challenges mentioned above, TAF was
able to continue its journey as the market
leader in the poultry breeding in Sri Lanka
maintaining its competitiveness. In doing so
the excellence performance demonstrated
by the TAF operations team was highly
commendable.
With Sri Lankan economy predicted to
reach over 9% p.a. during the next few
years TAF is optimistic about the growth
potential. We hope that infrastructure
development will continue as expected
during 2011 allowing access to new markets
throughout the country while creating
necessary background for new farms to be
established, especially in the North and East
of the island.
Financial Review
Our fi nancial accomplishments for the
year under review recorded revenue of Rs.
1,157.78 million, which is an increase of
38% against Rs. 836.46 million in 2009.
Your company has reported a net profi t after
tax of Rs. 229.08 million as compared to the
net loss of Rs. 191.86 million reported in
2009.
Dividends
As we are planning for the capital investment
in year 2011, the Board of Directors
believes it would be prudent to refrain from
declaring a dividend for the fi nancial year
ended 31 December 2010. We trust our
decision will be understood and appreciated
by shareholders as being one that will bode
well for the Group in the future.
Acknowledgements
Finally on behalf of the Board of Directors
I take this opportunity to thank you for
the trust placed on TAF as its valued
shareholders. I would also like to express
my sincere appreciation to our dedicated
employees and customers for their
determination during 2010 and the
continued support given to meet the high
growth standards. I wish to convey to all
our shareholders and investors the future is
bright for TAF and lot of potential waits to
be exploited in the coming years.
