Bukit Darah : Interim Financial Statements

BUKIT DARAH PLC

Condensed Interim Financial Statements

For the nine months ended 31st December 2022

Bukit Darah PLC -

Performance update for the nine months ended 31st December 2022

Bukit Darah PLC recorded a consolidated revenue of Rs. 254 Bn for the nine months ended 31st December 2022, indicating an increase of 121% relative to the comparable period. Aforementioned revenue increase also reflects the currency translation adjustments from overseas operations of the group. The group achieved a profit before tax of Rs. 42.2 Bn and a profit after tax of Rs. 27.8 Bn, which denoted YoY increases of Rs. 29.5 Bn and Rs. 18.8 Bn respectively. At the Company level, Bukit Darah PLC reported a revenue of Rs. 178.2 Mn with a 12% YoY increase while the profit before tax for the concluded nine months stood at Rs. 153.7 Mn.

OIL PALM PLANTATIONS

Oil Palm Plantations sector recorded a revenue of Rs. 120.2 Bn for the concluded nine months. In the period under consideration, operations of the sector were heavily impacted by wet weather with increased rainfall impacting crop harvesting and transportation of Fresh Fruit Bunches (FFB). Continuous rain also impacted the fertilizer application program in several locations, which led to cost increases in harvesting. Upward price movements of fertilizer and fuel in the global market further exacerbated the cost increases on a YoY basis.

Meanwhile, Crude Palm Oil (CPO) spot prices in Bursa Malaysia declined from MYR 7,600 per Metric Tonne (MT) to MYR 4,045 per MT, with the high prices in April 2022, decreasing by 46% by end-December. CPO price declined as Indonesian government reversed its export policies which were enacted to guarantee sufficient local supply at affordable prices for local consumers, which created a significant price decline in the domestic market highlighting the impact of government policy changes to market prices.

For the concluded nine months, Oil Palm Plantations sector reported a profit before tax of Rs. 31.1 Bn.

OILS AND FATS

The Oils and fats segment recorded a topline of Rs. 60.6 Bn for the nine months under review. Malaysian specialty fats operations (PVO) witnessed a 9% YoY increase in sales volumes for the specialty fats products. Nevertheless, inflation impact from higher gas and chemical costs negatively affected the sector performance for the period under review.

The profit before tax of the Oils and Fats sector was LKR 2.1 Bn.

Goodhope divested 100% of its shareholding in the Indian refinery (Arani) in January 2023 pursuant to the share purchase agreement entered into with the buyer on 24th November 2022.

BEVERAGE

In the reporting period, the Beverage sector encountered considerable operational challenges due to increased cost of raw materials, energy crisis and forex shortages. Further, recent tax hikes by the Government have caused the beer prices to rise, which has had a detrimental effect on the volume growth of the sector. The sector recorded a profit before tax of Rs. 9.1 Bn on a revenue of Rs. 71.6 Bn, for the period under review.

PORTFOLIO AND ASSET MANAGEMENT

Macroeconomic volatilities weighed on the performance of the Colombo Stock Exchange as corporate fundamentals were impacted by the inflation spike, upward shift in interest rates, higher taxes and the reduction in real income. Despite the 4.65% decline in the All Share Price Index, the sector's discretionary portfolio increased by 4.21% (dividend-adjusted) during the period under review. For the discretionary portfolio, the sector continues to adhere to its successful long-term investment philosophy of fundamental investing. However, the total portfolio of the sector including the strategic holdings, recorded a decline of 4.65% (dividend-adjusted) during the period under the review. The profit before tax of the sector for the concluded nine months stood at Rs. 323.2 Mn, which declined by 70% YoY, primarily due to accounting for fair value losses from fair value through profit or loss financial assets.

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Bukit Darah PLC | Condensed Interim Financial Statements for the nine months ended 31st December 2022

Bukit Darah PLC -

Performance update for the nine months ended 31st December 2022

LEISURE

Slow rebound in tourism and cutbacks in discretionary spending by local consumers continued to cripple the demand conditions of the Leisure sector. Against this backdrop, Pegasus Reef hotel and Giritale hotel recorded occupancies of 31% and 27% respectively, for the reporting period. Hotels' revenues were supported by the performance of the Weddings and MICE segments. Accordingly, the revenue for the nine months noted a YoY increase of 162% to reach Rs. 560.2 Mn while the sector reported a loss before tax adjusted for depreciation of Rs. 19.1 Mn, which was a reduction of 75% YoY.

REAL ESTATE

Commercial real-estate marketspace experienced stagnant performance amid high inflationary pressures and weak tenant demand. Accordingly, the sector occupancy for the period under review stood at 73% relative to 69% in the prior period, while rates registered a marginal YoY increase. Accordingly, the sector recorded a profit before tax of Rs. 133.1 Mn on a revenue of Rs. 197.8 Mn for the nine months ended 31st December 2022.

Carsons Management Services (Pvt) Ltd.

10th February 2023

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Statement of Income - Company

Unaudited financial statements for the period ended 31st December 2022 (Amounts expressed in Sri Lankan Rs. '000)

	3Q 2022	3Q 2021	Change	9M 2022	9M 2021	Change
			%			%
Revenue	18,673	5,312	252	178,157	158,973	12
Direct operating expenses	-	-	-	-	-	-
	18,673	5,312	252	178,157	158,973	12
Items of expenses
Administrative expenses	(6,710)	(6,637)	1	(24,469)	(21,387)	14
Profit/(loss) from operations	11,963	(1,325)	1,003	153,688	137,586	12
Income tax expenses
Current taxation	(2,409)	-	100	(5,878)	(2,536)	132
Profit/(loss) for the period	9,554	(1,325)	821	147,810	135,050	9
Other Comprehensive Income/(expenses) (OCI)
Equity investments at FVOCI - net change in fair value	44,850	(12,350)	463	44,850	(24,700)	282
Total other comprehensive income/(expenses)	44,850	(12,350)	463	44,850	(24,700)	282
Total Comprehensive Income/(expenses) for the period	54,404	(13,675)	498	192,660	110,350	75
Basic earnings/(loss) per share (Rs.)	0.09	(0.01)	967	1.29	1.18	9.4
Dividend per ordinary share (Rs.)	-	-	-	1.10	1.00	10
Figures in brackets indicate deductions.

The notes on pages 12 to 24 form an integral part of these financial statements. 10th February 2023

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