Cargills Ceylon : Quarterly Financial Statements as at 31 March 2024

CARGILLS (CEYLON) PLC

Condensed Interim Financial Statements

For the Year Ended

31st March 2024

CONTENTS

Management Review	01
Statement of Profit or Loss and Other Comprehensive Income - Group	02
Statement of Profit or Loss and Other Comprehensive Income - Company	03
Statement of Financial Position	04
Statement of Changes in Equity	05
Statement of Cash Flows	06
Segment Information	07
Explanatory Notes	08
Investor Relations Supplement	09
Corporate Information	IBC

Management Review

Period ending 31st March 2024

Cargills (Ceylon) PLC is pleased to announce the Group's financial results for the 12 months ended 31 March 2024. The Group recorded a revenue of Rs. 223,440 Mn, a 14.2% year-over-year (YoY) increase. Operating profit was Rs. 13,513 Mn, a 1.8% YoY decrease, while Profit After Tax (PAT) was Rs. 5,936 Mn, marking a 10.3% YoY increase. The contraction in operating profits is largely attributable to higher electricity and transport costs. Despite the decline in operating profit, the PAT improved due to lower net finance costs and a change in the fair value of investment property.

For the three months ended 31 March 2024, revenue was Rs. 54,403 Mn, up 12.0% YoY. Operating profit for the quarter was Rs. 2,763 Mn, a 19.5% YoY decrease, and PAT was Rs. 1,952 Mn, up 4.9% YoY. The contraction in operating profits was once again due to higher electricity tariffs, increased VAT, and the removal of the VAT exemption on locally produced dairy products.

Operating environment : Effective 01 January 2024, the Value Added Tax (VAT) increased from 15% to 18%, causing a temporary 6% spike in inflation in January, which has since declined to low single digits. Electricity tariffs were reduced in March, and the benefit of this reduction is expected from Q1 FY24/25 onwards. However, tariffs remain significantly higher than the previous year. Excessive rainfall in Q3 impacted agricultural production and caused supply disruptions in January, leading to a sudden spike in fresh produce prices. However, production levels have picked up since, and prices have stabilized, providing much-needed relief for consumers. The weather during Q4 was more favorable for business, with limited rainfall and higher than expected temperatures.

Retail : Sales growth of 14.5% during Q4 was driven by increased footfall, as basket values remained flat YoY. Though basket growth was flat, we have seen an increase in volumes, suggesting consumers are prioritizing essential items and cheaper products. This reflects the underlying challenges faced by consumers. Increased customer footfall is indicative of the low-price strategy which we continued to maintain throughout the year, offering the lowest prices on essential products and regular promotions on branded goods. We see a conversion from general trade as consumers seek better bargains and savings on everyday purchases. Same store sales growth was commendable during Q4, at 11.4%. We opened 3 new stores during Q4, taking the total number to 527.

Although the year was marked by relative stability and moderating price levels, we also saw noticeable cost increases due to the revised electricity tariff, which added considerable pressure on operating margins. Reported net finance costs for the segment increased due to a lower base last year, arising from the capitalization of interest cost related to the new Distribution Center set up last year. Adjusting for this, lower interest rates and better working capital management led to a reduction in finance costs, though not sufficient to offset higher operating expenses.

FMCG : The FMCG sector recorded 9.6% sales growth in Q4, driven by a combination of price increases and volume growth. Volumes were supported by the extreme heat during the quarter, particularly boosting sales of ice cream and ready-to-drink fruit beverages, in contrast to Q3, where heavy rainfall impacted sales. Despite becoming VAT liable from January 2024, the dairy sector managed to recover this impact through selective price increases and volume growth. Part of the VAT was absorbed by the company, impacting profitability. The confectionery business recorded improved momentum during Q4, though volumes remain below pre-2022 levels when prices were significantly lower. The processed meats category experienced slower sales growth as whole chicken and seafood prices normalized in the market. Nevertheless, this business continued to record sales growth and improved profitability YoY, driven by focused management efforts. The much-anticipated extension to the meat processing facility was completed in March, creating new opportunities for the business, especially in export markets and the HORECA channel, which is gaining traction with the recovery in tourism.

Restaurants : KFC Sri Lanka maintained strong performance with 10% sales growth in Q4. Though we did not take any price increases between Q1 and Q3, price increases were implemented on selected SKUs during Q4 to mitigate the impact of the VAT increase. Despite this, KFC Sri Lanka remains the most affordable quick-service restaurant provider in the country. Margins contracted during the quarter due to higher operating expenses, mainly transport and electricity. The QSR industry has faced a global setback with slower growth in many regions, partly due to geopolitical factors beyond the control of the franchisor or franchisees. We currently operate 71 KFC stores and one TGI Fridays restaurant. No new stores were added during Q4.

Outlook : Management expects consumption to recover in the coming months, driven by low and stable inflation, a resurgence in tourism, a stable currency, and declining market interest rates. However, risks such as adverse weather conditions remain, which could impact agricultural production as well as tourism. The medium to longer- term outlook remains positive as debt restructuring talks international creditors are expected to conclude in the next few months. Sri Lanka also remains on track to achieve the IMF targets, though this will require continued fiscal consolidation and reforms. The private sector is expected to drive economic growth in the coming years, with the government likely to create a regulatory environment conducive to more local and foreign private sector investment.

With improving consumer sentiment and a decline in market interest rates, the Group plans to accelerate the expansion of its Retail store network. Additionally, investments will focus on expediting various digitalization initiatives across the Group, particularly in the agriculture and dairy supply chains. Management is confident that all sectors of the Group possess significant growth potential, and selective investments will be made to grow the business and tap into market opportunities. The immediate focus will remain on improving productivity measures, curtailing price increases, and boosting volumes in all key sectors.

A detailed account of the year and Management's outlook will be provided in the Annual Report for FY23/24, to be released in July.

01

Cargills (Ceylon) PLC

Condensed

Interim Financial

Statements 31

March 2024

STATEMENT OF PROFIT OR LOSS AND

OTHER COMPREHENSIVE INCOME

	For the three months ended 31 March		For the twelve months ended 31 March
Group	Rs. '000 2024	Rs. '000 2023	Change %	Rs. '000 2024	Rs. '000 2023	Change %
	(Audited)			(Audited)
Revenue	54,403,399	48,555,352	12.04	223,440,484	195,617,899	14.22
Cost of sales	(48,492,449)	(42,749,577)	(13.43)	(198,688,399)	(172,948,004)	(14.88)
Gross profit	5,910,950	5,805,775	1.81	24,752,085	22,669,895	9.18
Other income	545,127	544,532	0.11	2,266,690	2,327,117	(2.60)
Distribution expenses	(1,832,844)	(1,449,578)	(26.44)	(6,879,203)	(5,893,807)	(16.72)
Administrative expenses	(1,860,159)	(1,467,304)	(26.77)	(6,626,827)	(5,343,670)	(24.01)
Results from operating activities	2,763,074	3,433,425	(19.52)	13,512,745	13,759,535	(1.79)
Finance income	722,857	250,957	188.04	1,964,222	841,299	133.47
Finance cost	(1,947,397)	(1,542,775)	(26.23)	(7,214,575)	(6,578,663)	(9.67)
Net finance costs	(1,224,540)	(1,291,818)	5.21	(5,250,353)	(5,737,364)	8.49
Change in fair value of investment property	931,003	300,779	209.53	931,003	300,779	209.53	02
Share of profit / (loss) of								Cargills
equity accounted investees, net of tax	(121,906)	150,941	(180.76)	52,528	193,692	(72.88)		(Ceylon) PLC
Profit/(loss) before taxation	2,347,631	2,593,327	(9.47)	9,245,923	8,516,642	8.56		Condensed
								Interim
Income tax expense	(395,466)	(731,443)	45.93	(2,718,645)	(2,766,532)	1.73
	Financial
Profit/(loss) after tax before dividend tax expense	1,952,165	1,861,884	4.85	6,527,278	5,750,110	13.52		Statements 31
Tax effect of dividends paid to equity holders	-	-	-	(591,159)	(369,265)	(60.09)		March 2024
Profit/(loss) for the period	1,952,165	1,861,884	4.85	5,936,119	5,380,845	10.32
Other comprehensive income (OCI)
Items that will not be reclassified to profit or loss
Revaluation of lands and buildings	3,078,314	-		3,078,314	-
Actuarial gain/(loss) on employee benefit liability	218,788	21,303		218,788	21,303
Share of other comprehensive income
in equity accounted investee, net of tax	4,426	20,684		509,469	(36,660)
Net change in fair value of FVOCI financial assets	5,671	(5,215)		(12,242)	43,726
Tax on other comprehensive income	(989,140)	(110,680)		(989,140)	(370,169)
Other comprehensive income for the
period, net of tax	2,318,059	(73,908)		2,805,189	(341,800)
Total comprehensive income for the period	4,270,224	1,787,976		8,741,308	5,039,045
Profit attributable to :
Equity shareholders of the parent	1,822,704	1,807,043		5,886,785	5,366,006
Non controlling interest	129,461	54,841		49,334	14,839
Profit/(loss) for the period	1,952,165	1,861,884		5,936,119	5,380,845
Total comprehensive income attributable to:
Equity shareholders of the parent	4,140,021	1,733,194		8,691,232	5,024,323
Non controlling interest	130,203	54,782		50,076	14,722
Total comprehensive income for the period	4,270,224	1,787,976		8,741,308	5,039,045
Basic Earnings per share (Rs.)	7.07	7.01		22.85	20.82
Diluted Earnings per share (Rs.)	7.07	7.01		22.85	20.82

Explanatory notes are given on page 8.

STATEMENT OF PROFIT OR LOSS AND

OTHER COMPREHENSIVE INCOME

	For the three months ended 31 March		For the twelve months ended 31 March
Company	Rs. '000 2024	Rs. '000 2023	Change %	Rs. '000 2024	Rs. '000 2023	Change %
	(Audited)			(Audited)
Revenue	2,967	1,497	98.20	28,528	36,062	(20.89)
Cost of sales	(3,158)	(1,625)	(94.34)	(28,034)	(35,142)	20.23
Gross profit	(191)	(128)	(49.22)	494	920	(46.30)
Other income	795,093	696,406	14.17	6,119,147	4,721,236	29.61
Administrative expenses	(766,993)	(570,617)	(34.41)	(2,390,918)	(1,813,264)	(31.86)
Results from operating activities	27,909	125,661	(77.79)	3,728,723	2,908,892	28.18
							03
Finance income	304,994	282,619	7.92	1,365,202	821,138	66.26
Finance cost	(452,161)	(462,280)	2.19	(1,932,136)	(1,609,070)	(20.08)		Cargills
								(Ceylon) PLC
Net finance costs	(147,167)	(179,661)	18.09	(566,934)	(787,932)	28.05
Change in fair value of investment property	128,995	105,581	22.18	128,995	105,581	22.18		Condensed
								Interim
Profit/(loss) before taxation	9,737	51,581	(81.12)	3,290,784	2,226,541	47.80
	Financial
Income tax expense	(69,961)	(19,965)	(250.42)	(167,363)	(183,171)	8.63		Statements 31
								March 2024
Profit/(loss) after tax before dividend tax expense	(60,224)	31,616	(290.49)	3,123,421	2,043,370	52.86
Tax effect of dividends paid to equity holders	-	-	-	-	(330,484)	100.00
Profit/(loss) for the period	(60,224)	31,616	(290.49)	3,123,421	1,712,886	82.35
Other comprehensive income (OCI)
Items that will not be reclassified to profit or loss
Revaluation of lands and buildings	39,297	-		39,297	-
Actuarial gain/(loss) on employee benefit liability	88,399	(15,189)		88,399	(15,189)
Net change in fair value of FVOCI financial assets	5,674	(5,422)		(12,239)	43,519
Tax on other comprehensive income	(38,309)	(19,472)		(38,309)	(97,444)
Other comprehensive income for the
period, net of tax	95,061	(40,083)		77,148	(69,114)
Total comprehensive income for the period	34,837	(8,467)		3,200,569	1,643,772
Basic Earnings per share (Rs.)	(0.23)	0.12		12.12	6.65
Diluted Earnings per share (Rs.)	(0.23)	0.12		12.12	6.65

Explanatory notes are given on page 8.

STATEMENT OF FINANCIAL POSITION

Explanatory notes are given on page 8.

I certify that the financial statements have been prepared in accordance with the requirements of the Companies Act No. 7 of 2007.

(Signed.)

Dilantha Jayawardhana

Executive Director

The Board of Directors is responsible for the preparation and presentation of these financial statements.

Signed on behalf of the Board

(Signed.)	(Signed.)
Ranjit Page	Imtiaz Abdul Wahid
Deputy Chairman /	Group Managing
Group CEO	Director / Deputy CEO

31-May-24 Colombo

	GROUP		COMPANY
As at	31 March 2024	31 March 2023	31 March 2024	31 March 2023
Rs. '000	Rs. '000	Rs. '000	Rs. '000
		(Audited)		(Audited)
Assets
Non-current assets
Property, plant and equipment	49,493,157	46,922,982	3,448,967	3,461,947
Right of use asset	20,371,042	20,641,258	945,174	1,016,611
Investment property	10,829,980	7,342,566	3,424,330	3,293,903
Intangible assets	1,630,190	1,582,713	105,262	145,907
Investment in subsidiaries	-	-	5,975,269	5,960,269
Investment in equity accounted investees	4,980,816	4,364,261	4,772,403	4,717,843
Other financial assets	1,582,702	1,569,942	1,582,224	1,569,461
Prepayment on leasehold land and buildings	-	200,912	-	-
Biological assets	65,737	23,873	-	-
Deferred tax assets	-	27,829	-	-
Total non-current assets	88,953,624	82,676,336	20,253,629	20,165,941
Current assets
Inventories	23,253,390	22,872,826	-	7,646
Biological assets	150,018	33,681	-	-
Trade and other receivables	12,618,927	9,851,088	597,673	683,722
Amounts due from related companies	490,916	391,668	2,697,829	4,007,984
Other financial assets	131,107	119,667	-	-
Cash and cash equivalents	7,556,646	4,841,416	60,097	7,933
Total current assets	44,201,004	38,110,346	3,355,599	4,707,285
Total assets	133,154,628	120,786,682	23,609,228	24,873,226
Equity
Stated capital	6,841,068	6,841,068	6,841,068	6,841,068
Reserves	8,846,591	6,708,955	383,582	368,313
Retained earnings	16,744,114	13,527,172	4,520,121	4,671,475
Total equity attributable to equity holders of the company	32,431,773	27,077,195	11,744,771	11,880,856
Non-controlling interest	3,890,688	3,840,612	-	-
Total equity	36,322,461	30,917,807	11,744,771	11,880,856
Liabilities
Non-current liabilities
Interest bearing loans and borrowings	1,618,351	4,114,873	1,012,406	2,789,844
Lease liability	23,173,280	22,921,256	921,155	962,697
Deferred tax liability	2,265,440	1,337,651	552,755	484,151
Capital grants	-	4,493	-	-
Employee benefit liabilities	1,956,969	1,833,667	766,970	726,702
Total non-current liabilities	29,014,040	30,211,940	3,253,286	4,963,394
Current liabilities
Trade and other payables	32,408,999	27,936,283	562,172	564,587
Current tax liabilities	5,485,955	5,954,905	435,341	417,017
Amounts due to related companies	9,996	6,407	1,139	1,286
Dividend payable	98,982	78,673	98,982	78,673
Interest bearing loans and borrowings	28,461,477	24,342,847	7,464,462	6,932,669
Lease liability	1,352,718	1,337,820	49,075	34,744
Total current liabilities	67,818,127	59,656,935	8,611,171	8,028,976
Total liabilities	96,832,167	89,868,875	11,864,457	12,992,370
Total equity and liabilities	133,154,628	120,786,682	23,609,228	24,873,226
Net Assets value per share (Rs.)	125.86	105.08	45.58	46.11

04

Cargills (Ceylon) PLC

Condensed

Interim

Financial

Statements 31

March 2024

STATEMENT OF CHANGES IN EQUITY

Group	Stated	Capital	Revaluation	FVOCI	Employee	Retained	Non-	Total
Capital	Reserve	Reserve	Reserve	Share Option	Earnings	Controlling
	Rs. '000	Rs. '000			Reserve		Interest
	Rs. '000	Rs. '000	Rs. '000	Rs. '000	Rs. '000	Rs. '000
Balance as at 1 April 2022	6,841,068	7,928	7,013,019	7,965	72,482	11,552,781	3,626,272	29,121,515
Charges relating to surcharge tax	-	-	-	-	-	(1,067,152)	(1,367)	(1,068,519)
Adjusted balance as at 1 April 2022	6,841,068	7,928	7,013,019	7,965	72,482	10,485,629	3,624,905	28,052,996
Profit for the period	-	-	-	-	-	5,366,006	14,839	5,380,845
Other comprehensive income	-	-	(363,683)	43,726	-	(21,726)	(117)	(341,800)
Total comprehensive income	-	-	(363,683)	43,726	-	5,344,280	14,722	5,039,045
Transactions with owners of the company, recognised directly in equity
Write back of unclaimed dividends	-	-	-	-	-	16,027	-	16,027
Classification of non controlling interest	-	-	-	-	-	(200,985)	200,985	-
Transfer of value of expired employee share options	-	-	-	-	(72,482)	72,482	-	-
Dividends	-	-	-	-	-	(2,190,261)	-	(2,190,261)
Balance as at 31 March 2023	6,841,068	7,928	6,649,336	51,691	-	13,527,172	3,840,612	30,917,807
Balance as at 1 April 2023	6,841,068	7,928	6,649,336	51,691	-	13,527,172	3,840,612	30,917,807
Profit for the period	-	-	-	-	-	5,886,785	49,334	5,936,119
Other comprehensive income	-	-	2,153,750	(12,242)	-	662,939	742	2,805,189
Total comprehensive income	-	-	2,153,750	(12,242)	-	6,549,724	50,076	8,741,308
Transactions with owners of the company, recognised directly in equity
Write back of unclaimed dividends	-	-	-	-	-	13,157	-	13,157
Transfer From revaluation reserve due to disposal of revalued assets	-	-	(3,872)	-	-	3,872	-	-
Dividends	-	-	-	-	-	(3,349,811)	-	(3,349,811)
Balance as at 31 March 2024	6,841,068	7,928	8,799,214	39,449	-	16,744,114	3,890,688	36,322,461
Company			Stated	Revaluation	FVOCI	Employee	Retained	Total
		Capital	Reserve	Reserve	Share Option	Earnings
						Reserve
			Rs. '000	Rs. '000	Rs. '000	Rs. '000	Rs. '000	Rs. '000
Balance as at 1 April 2022			6,841,068	420,431	6,364	72,482	5,261,395	12,601,740
Profit for the period			-	-	-	-	1,712,886	1,712,886
Other comprehensive income			-	(102,001)	43,519	-	(10,632)	(69,114)
Total comprehensive income			-	(102,001)	43,519	-	1,702,254	1,643,772
Transactions with owners of the company, recognised directly in equity
Write back of unclaimed dividends			-	-	-	-	16,027	16,027
Transfer of value of expired employee share options			-	-	-	(72,482)	(117,940)	(190,422)
Dividends			-	-	-	-	(2,190,261)	(2,190,261)
Balance as at 31 March 2023			6,841,068	318,430	49,883	-	4,671,475	11,880,856
Balance as at 1 April 2023			6,841,068	318,430	49,883	-	4,671,475	11,880,856
Profit for the period			-	-	-	-	3,123,421	3,123,421
Other comprehensive income			-	27,508	(12,239)	-	61,879	77,148
Total comprehensive income			-	27,508	(12,239)	-	3,185,300	3,200,569
Transactions with owners of the company, recognised directly in equity
Write back of unclaimed dividends			-	-	-	-	13,157	13,157
Dividends			-	-	-	-	(3,349,811)	(3,349,811)
Balance as at 31 March 2024			6,841,068	345,938	37,644	-	4,520,121	11,744,771

05

Cargills (Ceylon) PLC

Condensed

Interim

Financial

Statements 31

March 2024

STATEMENT OF CASH FLOWS

	GROUP		COMPANY
For the twelve months ended 31 March	Rs. '000 2024	Rs. '000 2023	Rs. '000 2024	Rs. '000 2023
	(Audited)		(Audited)
Cash flows from operating activities
Profit before taxation	9,245,923	8,516,642	3,290,784	2,226,541
Adjustments for:
Depreciation on property, plant and equipment	4,522,621	3,915,735	64,232	68,076
Employee benefits	488,257	376,815	183,877	137,994
Amortisation of intangible assets	137,242	125,562	43,064	19,050
Amortisation of right of use assets	2,012,208	1,900,153	81,789	72,560
Net adjustment of ROU asset and liability	-	(23,863)	-	-
Change in fair value of biological assets	(86,917)	-	-	-
Change in fair value of investment property	(931,003)	(300,779)	(128,995)	(105,581)
Amortisation of deferred income	(4,493)	(11,482)	-	-
Gain on sale of property, plant and equipment	(1,200)	(1,497)	-	(590)
Dividend income	(1,750)	(1,520)	(3,351,620)	(2,524,329)
Impairment / (reversal) of inventories	(68,267)	39,959	-	-
Impairment / (reversal) of trade receivables	28,125	(29,500)	-	(373)
Net finance costs	5,250,353	5,737,364	566,934	787,932
Gain on lease modification	(1,351)	-	-	-
Loss on deemed disposal of investment in associate	114,893	-	-	-
Share of (profit) / loss on equity accounted investees, net of tax	(167,421)	(193,692)	-	-
Operating profit before working capital changes	20,537,220	20,049,897	750,065	681,280
Changes in working capital
- (Increase) / decrease in inventories	(312,297)	(8,110,501)	7,646	5,516
- (Increase) / decrease in trade and other receivables	(2,861,499)	(2,353,953)	103,130	(180,287)
- (Increase) / decrease in related company receivables	(52,877)	(14,603)	1,255,595	(1,674,707)
- Increase / (decrease) in trade and other payables	4,474,773	4,882,575	(2,420)	(40,902)
- Increase / (decrease) in related company payables	3,589	1,835	(147)	(14,051)
Cash generated from/(used in) operations	21,788,909	14,455,250	2,113,869	(1,223,151)
Income taxes paid	(3,812,278)	(1,151,418)	(135,822)	(227,756)
Surcharge tax paid	-	(1,068,519)	-	-
Interest paid	(5,045,132)	(4,584,238)	(1,876,029)	(1,556,582)
Retiring gratuity paid	(146,167)	(71,029)	(55,210)	(21,454)
Net cash generated from/(used in) operating activities	12,785,332	7,580,046	46,808	(3,028,943)
Cash flows from investing activities
Acquisition and construction of property, plant and equipment	(5,809,652)	(10,832,042)	(11,955)	(75,681)
Acquisition and construction of investment property	(871,399)	(1,903)	(1,432)	(17,394)
Acquisition of intangible assets	(184,719)	(268,860)	(2,419)	(102,786)
Acquisition of biological assets	(71,284)	(57,554)	-	-
Interest income received	1,962,165	785,684	1,365,202	821,138
Dividend received	1,750	1,520	3,351,620	2,524,329
Investment in subsidiaries	-	-	(15,000)	(18,000)
Investment in FVTOCI investments	(25,000)	-	(25,000)	-
Proceeds from disposal of property, plant and equipment	10,427	7,027	-	6,147
(Addition) / disposal to other financial assets	(11,440)	896,889	-	-
Net cash generated from/(used in) investing activities	(4,999,152)	(9,469,239)	4,661,016	3,137,753
Cash flows from financing activities
Net proceeds from/(repayment of) short term borrowings	4,448,697	11,740,312	650,000	3,960,000
Net proceeds from/(repayment of) long term borrowings	(3,495,434)	(4,096,121)	(1,779,918)	(1,950,000)
Lease payments	(3,376,713)	(3,097,721)	(93,670)	(80,575)
Dividend paid	(3,316,345)	(2,167,856)	(3,316,345)	(2,167,856)
Net cash generated from financing activities	(5,739,795)	2,378,614	(4,539,933)	(238,431)
Increase / (decrease) in cash and cash equivalents	2,046,385	489,421	167,891	(129,621)
Movement in cash and cash equivalents
At the beginning of the period	2,331,470	1,842,049	(151,781)	(22,160)
Movement during the period	2,046,385	489,421	167,891	(129,621)
At the end of the period	4,377,855	2,331,470	16,110	(151,781)

06

Cargills

(Ceylon) PLC

Condensed

Interim

Financial

Statements 31

March 2024

SEGMENT INFORMATION

		Food Retailing	Food and Beverage	Restaurant	Real Estate	Others	Group
				Manufacturing and
				Distribution
	For the quarter ended 31 March	Rs. '000 2024	Rs. '000 2023	Rs. '000 2024	Rs. '000 2023	Rs. '000 2024	Rs. '000 2023	Rs. '000 2024	Rs. '000 2023	Rs. '000 2024	Rs. '000 2023	Rs. '000 2024	Rs. '000 2023
	Revenue	40,957,559	35,764,196	16,006,800	14,604,210	2,549,354	2,317,521	-	-	2,967	1,497	59,516,680	52,687,424
	Intra segment revenue	-	-	(618,623)	(379,074)	-	-	-	-	-	-	(618,623)	(379,074)
	Inter segment revenue	(61,995)	(57,828)	(4,429,696)	(3,693,673)	-	-	-	-	(2,967)	(1,497)	(4,494,658)	(3,752,998)
		40,895,564	35,706,368	10,958,481	10,531,463	2,549,354	2,317,521	-	-	-	-	54,403,399	48,555,352
	Segment operating profit	1,076,575	1,348,329	1,319,759	1,457,616	390,828	508,312	(27,933)	(960)	3,845	120,128	2,763,074	3,433,425
	Net finance cost	(820,995)	(575,981)	(150,303)	(486,957)	(15,309)	92,782	(68,518)	757	(169,415)	(322,419)	(1,224,540)	(1,291,818)
	Fair value of investment property	-	-	2,700	15,000	-	-	869,758	207,333	58,545	78,446	931,003	300,779
	Share of equity accounted investees results	-	-	-	-	-	-	-	-	(121,906)	150,941	(121,906)	150,941
	Profit before taxation	255,580	772,348	1,172,156	985,659	375,519	601,094	773,307	207,130	(228,931)	27,096	2,347,631	2,593,327
		Food Retailing	Food and Beverage	Restaurant	Real Estate	Others	Group
				Manufacturing and
				Distribution
For the twelve months ended 31 March	Rs. '000 2024	Rs. '000 2023	Rs. '000 2024	Rs. '000 2023	Rs. '000 2024	Rs. '000 2023	Rs. '000 2024	Rs. '000 2023	Rs. '000 2024	Rs. '000 2023	Rs. '000 2024	Rs. '000 2023
Revenue	167,065,641	145,586,716	64,672,942	57,749,543	10,691,365	8,931,458	-	-	28,528	36,062	242,458,476	212,303,779
Intra segment revenue	-	-	(2,216,000)	(1,098,588)	-	-	-	-	-	-	(2,216,000)	(1,098,588)
Inter segment revenue	(219,965)	(192,891)	(16,553,499)	(15,358,339)	-	-	-	-	(28,528)	(36,062)	(16,801,992)	(15,587,292)
		166,845,676	145,393,825	45,903,443	41,292,616	10,691,365	8,931,458	-	-	-	-	223,440,484	195,617,899
Segment operating profit	5,331,605	6,422,416	6,159,014	5,525,289	1,757,513	1,482,462	(42,437)	(19,112)	307,050	348,480	13,512,745	13,759,535
Net finance cost	(3,478,544)	(3,151,165)	(751,499)	(1,355,697)	46,240	26,764	(104,210)	3,397	(962,340)	(1,260,663)	(5,250,353)	(5,737,364)
Fair value of investment property	-	-	2,700	15,000	-	-	869,758	207,333	58,545	78,446	931,003	300,779
Share of equity accounted investees results	-	-	-	-	-	-	-	-	52,528	193,692	52,528	193,692
Profit before taxation	1,853,061	3,271,251	5,410,215	4,184,592	1,803,753	1,509,226	723,111	191,618	(544,217)	(640,045)	9,245,923	8,516,642

07

Cargills (Ceylon) PLC

Condensed

Interim

Financial

Statements 31

March 2024

Reportable Segment Assets *	71,021,196	66,306,651	26,946,522	23,014,372	5,785,575	5,269,953	10,669,637	8,520,672	18,731,698	17,675,034	133,154,628	120,786,682
Reportable Segment Liabilities **	60,455,936	57,449,006	16,443,638	14,682,871	3,966,406	4,283,860	3,849,743	354,077	12,116,444	13,099,061	96,832,167	89,868,875

• Segment Assets include Investment Property and Right of Use Assets
• Segment Liabilities include Lease Liabilities

EXPLANATORY NOTES

1. Basis of preparation

The results for the twelve months ended 31 March 2024 and the Statement of Financial Position as at 31 March 2024 are provisional and subject to audit.

The Condensed Interim Financial Statements of the Group and the Company have been prepared in accordance with Sri Lanka Accounting Standard LKAS 34 - Interim Financial Reporting. These Condensed Interim Financial Statements should be read in conjunction with the annual financial statements for the year ended 31 March 2023.

1. Dividend
   The Board of Directors have proposed a second interim dividend of Rs. 10.50 per share for the year ended 31 March 2024.
2. Events after the reporting period
   No events have occurred since the reporting date which would require any adjustment to, or disclosure in, the financial statements.

Freehold Land and Investment Property are respectively shown at the values in existence as at the last date of valuation. Other investments are reflected at values in existence as at the reporting date.

1. Fair value measurement and related fair value disclosures
   The fair values of all the financial assets and financial liabilities recognized during the period were not materially different from the transaction prices at the date of initial recognition. There were no transfers between Level 1 and Level 2 and no transfers into or out of Level 3 categories as per the fair value hierarchy, during the period. The fair value changes on financial instruments in Level 3 category was properly recorded in the statement of other comprehensive income.
   Fair valuation has been carried out as at 31 March 2024 for all unquoted equity shares classified as Level 3 within the fair value hierarchy according to fair valuation methodology, Fair value would not significantly vary if one or more inputs were changed.
2. Share of profit / (loss) of equity accounted investees
   Share of profit / (loss) of equity accounted investees, net of tax includes a sum of Rs 114,892,923 being a loss on the deemed disposal of shareholding in the Associate Cargills Bank PLC (CBP) arising out of the reduction in effective shareholding in CBP due to the public share issue of CBP carried out during the quarter. The Group did not apply for additional shares in the said public share issue due to restrictions placed on shareholdings in CBP by the Company through existing regulations of the Central Bank of Sri Lanka.
3. Contingent liabilities
   The income tax concession claimed under the Inland Revenue Act, No. 10 of 2006 and Act, 24 of 2017 is being contested by the Department of Inland Revenue. the consequent contingent liability is as follows:
   Cargills Food & Beverage Limited - Rs. 79.78 Mn, Cargills Dairies (Private) Limited - Rs. 64.58 Mn and Kotmale Dairy Products (Private) Limited Rs. 10.7 Mn.
   Having sought professional advice, the Management is confident that the tax concession are applicable and as such no liabilities would arise. Accordingly, no provision has been made in the financial statements.

7. Comparative figures

Where appropriate, the previous year's figures have been reclassified to conform to the current classification. All per share details have been calculated, for all periods, based on the number of shares in issue as at 31 March 2023.

08

Cargills (Ceylon) PLC

Condensed

Interim

Financial

Statements 31

March 2024