HVA Foods : Interim Financial Statements as at 31-12-2022

PROVISIONAL FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED

31ST DECEMBER 2022

Chairman's Review

Dear Shareholders,

HVA Foods PLC continued its recovery momentum during the quarter under review despite the domestic economic, social, and political challenges. As stated in my previous review, the new management is making every endeavor to achieve sustainable and profitable growth whilst addressing the current constraints.

Despite the challenges the Company recorded a revenue of LKR 2 billion for the 9 months ended 31st December 2022, which is a 95% growth compared to same period in FY 21/22. The company recorded a volume growth of 17% despite the exponential increase in Tea prices at the Colombo Tea Auction during the period under review by focusing on value added products targeting high yielding markets. The growth was further fueled by the acquisition of new customers contributing to 6% of total revenue as a direct result of participation at key international trade fares and international marketing efforts.

In terms of profitability, the company recorded a gross profit of LKR 205 Mn and a GP margin of 10.23% during the period under review resulting in a GP growth of 184% for the period under review. Furthermore, with LKR 73.59 Mn at EBITA level the Company's operational profitability has significantly improved compared to the same period last year.

The high cost of borrowing and the low US Dollar liquidity in the banking sector has contributed towards a loss of LKR 107.9 Mn. However, I would like to bring to your attention that the net loss of LKR 107.9 M as a percentage of revenue has improved by 7 basis points compared to the same period last year(-12% in FY 21/22). Furthermore, I would like to reaffirm to the shareholders that your Board of Directors along with the management is working towards reducing the cost of finance and we will be able to achieve sustainable growth in the near future.

B. S. M De Silva

Chairman

9th February 2023

HVA FOODS PLC

Statement of Comprehensive Income

Provisional Financial Statements for the Nine months ended 31st December 2022 All amounts in Sri Lanka Rupees

Revenue

Cost of Sales

Gross Profit

Other Operating Income

Distribution Expenses

Administration Expenses

Results from Operating Activities

Net Finance Costs

Profit / (Loss) Before Income Tax

Income Tax Expense

Profit / (Loss) for the Period

Actuarial gain/(Loss) on retirement benefit obligation Revaluation gain of Property, Plant and Equipments Tax on other comprehensive income

Total Comprehensive Income / (Expense) for the Period

Basic Earnings Per Share

Diluted Earnings Per Share

					Group										Company
	9 Months from 1st April to		3 Months from 1st Oct to	Year ended		9 Months from 1st April to		3 Months from 1st Oct to	Year ended
31.12.2022	31.12.2021		31.12.2022	31.12.2021		31.03.2022		31.12.2022	31.12.2021		31.12.2022	31.12.2021		31.03.2022
	(Unaudited)	(Unaudited)		(Unaudited)	(Unaudited)	(Audited)		(Unaudited)	(Unaudited)		(Unaudited)	(Unaudited)	(Audited)
2,003,585,062	1,025,048,040		357,994,865	437,539,831		1,261,234,481		2,003,585,062	1,025,048,040		357,994,865	437,539,831		1,261,234,481
(1,798,623,771)	(952,834,397)	(300,094,397)	(409,478,576)	(1,215,324,928)		(1,798,623,771)	(952,834,397)	(300,094,397)	(409,478,576)	(1,215,324,928)
204,961,290	72,213,643		57,900,468	28,061,255		45,909,553		204,961,290	72,213,643		57,900,468	28,061,255		45,909,553
8,291,586	57,528,988		2,828,686	2,116,387		94,166,619		8,291,586	57,528,988		2,828,686	2,116,387		94,166,619
(22,779,771)	(65,618,640)	(18,173,680)	1,713,916		(15,507,477)		(22,779,771)	(65,618,640)	(18,173,680)	1,713,916		(15,507,477)
(123,776,573)	(101,295,628)	(55,573,077)	(36,242,040)	(317,019,350)		(123,734,258)	(101,144,528)	(55,558,972)	(36,090,940)	(316,865,110)
66,696,532	(37,171,637)	(13,017,603)	(4,350,482)	(192,450,655)		66,738,847	(37,020,537)	(13,003,498)	(4,199,382)	(192,296,415)
(174,624,286)	(83,062,594)	(47,824,105)	(25,743,534)	(56,661,031)		(174,624,286)	(83,062,594)	(47,824,105)	(25,743,534)	(56,656,541)
(107,927,754)	(120,234,231)	(60,841,708)	(30,094,016)	(249,111,686)		(107,885,439)	(120,083,131)	(60,827,603)	(29,942,916)	(248,952,956)
-	-		-	-		20,066,395		-	-		-	-		20,066,395
(107,927,754)	(120,234,231)	(60,841,708)	(30,094,016)	(229,045,291)		(107,885,439)	(120,083,131)	(60,827,603)	(29,942,916)	(228,886,561)
				-	-		52,698						-	-		52,698
-			-	-		-		-			-	-		-
-			-	-		(7,378)		-			-	-		(7,378)
(107,927,754)	(120,234,231)	(60,841,708)	(30,094,016)	(228,999,971)		(107,885,439)	(120,083,131)	(60,827,603)	(29,942,916)	(228,841,241)
(0.93)	(1.81)	(0.52)	(0.45)	(3.45)		(0.93)	(1.81)	(0.52)	(0.45)	(3.44)
(1.18)	(1.81)	(0.67)	(0.45)	(3.45)		(1.18)	(1.81)	(0.67)	(0.45)	(3.44)

Figures in brackets indicate deductions.

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HVA FOODS PLC

Statement of Financial Position
Provisional Financial Statements for the Nine months ended 31st December 2022
All amounts in Sri Lanka Rupees
		Group				Company
As at	31.12.2022	31.12.2021	31.03.2022		31.12.2022	31.12.2021	31.03.2022
	(Unaudited)	(Unaudited)	(Audited)	(Unaudited)	(Unaudited)		(Audited)
ASSETS
Non-current assets
Property, plant & equipment	52,598,199	47,270,084	44,154,530		52,598,199	47,270,084	44,154,530
Goodwill	263,849,498	263,849,498	263,849,498		263,849,498	263,849,498	263,849,498
Investment in subsidiary	-	-	-		45,000,001	45,000,001	45,000,001
Intangible assets	54,961,905	52,181,337	53,251,884		10,022,908	7,242,340	8,312,887
Fixed Deposits	30,000,000	-	-		30,000,000	-	-
Deferred tax assets	71,390,000	14,776,364	71,390,000		71,390,000	14,776,364	71,390,000
Total non-current assets	472,799,601	378,077,283	432,645,912		472,860,605	378,138,287	432,706,916
Current assets
Inventories	454,943,830	121,759,764	166,504,061		454,943,830	121,759,764	166,504,061
Financial investments	1,280,095	2,569,007	1,887,938		1,280,095	2,569,007	1,887,938
Trade & Other receivables	406,745,523	228,296,960	287,376,671		406,745,523	228,296,960	287,376,671
Amounts due from related parties	2,754,320	-	706,525		3,009,960	227,901	935,925
Pre-payments & other recoverable	18,954,787	43,650,024	40,634,369		18,954,787	43,650,024	40,634,369
Deposits & advances receivables	37,982,257	26,086,530	165,236,467		37,982,257	26,086,530	165,236,467
Cash & cash equivalents	37,672,018	31,173,695	125,562,484		37,666,203	31,163,390	125,556,669
Total current assets	960,332,831	453,535,980	787,908,515		960,582,656	453,753,576	788,132,100
Total assets	1,433,132,432	831,613,263	1,220,554,427		1,433,443,261	831,891,863	1,220,839,016
Equity and liabilities
Stated capital	582,965,063	333,857,588	333,857,588		582,965,063	333,857,588	333,857,588
Revaluation reserve	16,701,071	16,701,071	16,701,071		16,701,071	16,701,071	16,701,071
Retained earnings	(635,364,692)	(455,014,245)	(527,436,938)		(635,019,748)	(454,719,246)	(527,134,309)
Total equity attributable to the equity holders of the company /	(35,698,558)	(104,455,586)	(176,878,279)		(35,353,614)	(104,160,587)	(176,575,650)
Total equity
Non-current liabilities
Employee benefits	7,808,104	7,421,927	7,113,868		7,808,104	7,421,927	7,113,868
Interest-bearing loans and borrowings	513,801,990	529,435,397	536,840,000		513,801,990	529,435,397	536,840,000
Government grant	8,043,076	9,152,476	8,875,126		8,043,076	9,152,476		8,875,126
Total non-current liabilities	529,653,170	546,009,800	552,828,994		529,653,170	546,009,800	552,828,994
Current liabilities
Trade payables	68,643,445	27,856,042	40,865,145		68,643,445	27,856,042	40,865,145
Interest-bearing loans and borrowings	510,756,849	186,216,989	270,202,758		510,756,849	186,216,989	270,202,758
Government grant	1,109,400	1,109,400	1,109,400		1,109,400	1,109,400	1,109,400
Amounts due to related parties	-	90,702,994	92,290,527		-	90,702,994	92,290,527
Deposits & advances payables	13,449,657	30,141,646	308,106,204		13,449,657	30,141,646	308,106,204
Accrued expenses & other creditors	83,969,669	51,747,221	70,508,588		83,935,554	51,730,822	70,490,548
Income tax payables	19,553,683	-	-		19,553,683	-	-
Bank overdrafts	241,695,119	2,284,757	61,521,090		241,695,119	2,284,757		61,521,090
Total current liabilities	939,177,821	390,059,049	844,603,712		939,143,706	390,042,650		844,585,672
Total liabilities	1,468,830,990	936,068,849	1,397,432,706		1,468,796,875	936,052,450		1,397,414,666
Total equity & liabilities	1,433,132,432	831,613,263	1,220,554,427		1,433,443,261	831,891,863		1,220,839,016
	(0)	-	-		(0)	-	-
Net Assets per Share - (LKR)	(0.31)	(1.57)	(2.66)		(0.30)	(1.57)	(2.66)

The figures as at 31st December 2022 are provisional & subject to audit.

Figures in brackets indicate deductions.

……………….…….……………

Head of Finance

Approved and signed for and on behalf of the Board

……………….…….……………	……………….……
Director	Director

Colombo

09th February 2023

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HVA FOODS PLC

Statement of Changes in Equity

Provisional Financial Statements for the Nine months ended 31st December 2022

All amounts in Sri Lanka Rupees

Group

	Attributable to equity holders of the company
	Stated capital		Revaluation		Retained		Total
		reserves		earnings
Balance as at 01st April 2021
333,857,588	237,613,039	(555,691,982)	15,778,645
Loss For the Period	-	-	(120,234,231)	(120,234,231)
Realisation of revaluation surplus	-	(220,911,968)	220,911,968	-
Balance as at 31st December 2021	333,857,588	16,701,071	(455,014,245)	(104,455,586)
Balance as at 01st April 2022	333,857,588	16,701,071	(527,436,938)	(176,878,279)
Issue of Shares	249,107,475					249,107,475
Loss For the Period	-	-	(107,927,754)	(107,927,754)
Balance as at 31st December 2022	582,965,063	16,701,071	(635,364,692)	(35,698,558)
Company	Stated capital		Revaluation		Retained		Total
		reserves		earnings
Balance as at 01st April 2021
333,857,588	237,613,039	(555,548,083)	15,922,544
Profit For the Period	-	-	(120,083,131)	(120,083,131)
Realisation of revaluation surplus	-	(220,911,968)	220,911,968	-
Balance as at 31st December 2021	333,857,588	16,701,071	(454,719,246)	(104,160,587)
Balance as at 01st April 2022	333,857,588	16,701,071	(527,134,309)	(176,575,650)
Issue of Shares	249,107,475					249,107,475
Loss For the Period	-	-	(107,885,439)	(107,885,439)
Balance as at 31st December 2022	582,965,063	16,701,071	(635,019,748)	(35,353,614)

Figures in brackets indicate deductions.

The above figures are not audited

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