New Risk • Mar 17
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Sri Lankan stocks, typically moving 7.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (7.0% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Mar 17
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to LK₨73.00, the stock trades at a trailing P/E ratio of 16.2x. Average trailing P/E is 10x in the Food industry in Sri Lanka. Total returns to shareholders of 448% over the past three years. Valuation Update With 7 Day Price Move • Feb 12
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to LK₨82.30, the stock trades at a trailing P/E ratio of 18.3x. Average trailing P/E is 11x in the Food industry in Sri Lanka. Total returns to shareholders of 574% over the past three years. Upcoming Dividend • Jan 30
Upcoming dividend of LK₨1.00 per share Eligible shareholders must have bought the stock before 06 February 2026. Payment date: 25 February 2026. Payout ratio is a comfortable 14% and the cash payout ratio is 93%. Trailing yield: 1.4%. Lower than top quartile of Sri Lankan dividend payers (4.2%). Lower than average of industry peers (3.0%). New Risk • Jan 29
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 93% Dividend yield: 1.4% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (93% cash payout ratio). Large one-off items impacting financial results. Market cap is less than US$100m (LK₨28.0b market cap, or US$90.4m). Board Change • Aug 14
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Senior Independent Director Hector Manil Jayesinghe was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Anuncio • Aug 11
Lanka Milk Foods (CWE) PLC, Annual General Meeting, Aug 29, 2025 Lanka Milk Foods (CWE) PLC, Annual General Meeting, Aug 29, 2025, at 10:00 Sri Lanka Standard Time. Reported Earnings • May 31
Full year 2025 earnings released: EPS: LK₨3.22 (vs LK₨5.54 in FY 2024) Full year 2025 results: EPS: LK₨3.22 (down from LK₨5.54 in FY 2024). Revenue: LK₨17.8b (up 6.6% from FY 2024). Net income: LK₨1.29b (down 42% from FY 2024). Profit margin: 7.2% (down from 13% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 57% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Mar 02
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Sri Lankan stocks, typically moving 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (6.9% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (7.1% net profit margin). Market cap is less than US$100m (LK₨18.0b market cap, or US$61.1m). Reported Earnings • Feb 15
Third quarter 2025 earnings released: EPS: LK₨1.32 (vs LK₨2.03 in 3Q 2024) Third quarter 2025 results: EPS: LK₨1.32 (down from LK₨2.03 in 3Q 2024). Revenue: LK₨5.05b (up 18% from 3Q 2024). Net income: LK₨526.3m (down 35% from 3Q 2024). Profit margin: 10% (down from 19% in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 30% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Feb 13
Upcoming dividend of LK₨0.63 per share Eligible shareholders must have bought the stock before 20 February 2025. Payment date: 12 March 2025. Payout ratio is a comfortable 17% but the company is not cash flow positive. Trailing yield: 1.4%. Lower than top quartile of Sri Lankan dividend payers (5.3%). Lower than average of industry peers (4.2%). New Risk • Dec 19
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Sri Lankan stocks, typically moving 5.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (5.7% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (LK₨17.1b market cap, or US$58.5m). Valuation Update With 7 Day Price Move • Dec 18
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to LK₨39.30, the stock trades at a trailing P/E ratio of 10.5x. Average trailing P/E is 7x in the Food industry in Sri Lanka. Total returns to shareholders of 71% over the past three years. Reported Earnings • Nov 14
Second quarter 2025 earnings released: EPS: LK₨0.78 (vs LK₨2.18 in 2Q 2024) Second quarter 2025 results: EPS: LK₨0.78 (down from LK₨2.18 in 2Q 2024). Revenue: LK₨4.36b (flat on 2Q 2024). Net income: LK₨310.2m (down 64% from 2Q 2024). Profit margin: 7.1% (down from 20% in 2Q 2024). Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Anuncio • Sep 04
Lanka Milk Foods (CWE) PLC, Annual General Meeting, Sep 26, 2024 Lanka Milk Foods (CWE) PLC, Annual General Meeting, Sep 26, 2024, at 10:00 Sri Lanka Standard Time. Anuncio • Aug 17
Lanka Milk Foods (CWE) PLC Announces Board and Committee Changes Lanka Milk Foods (CWE) PLC to appoint and constitute the nominations and governance committee:- Mr. H.M.A. Jayesinghe - Chairperson - Independent, non executive director, Mr. J.T.M. Cooray - Independent, non executive director and Mr. D. Hasitha S. Jayawardena - Non - Independent, non executive director. To reconstitute and change the composition of the remuneration committee:- Mr. H.M.A. Jayesinghe - Chairperson - Independent, non executive director, Mr. J.T.M. Cooray - Independent, non executive director and Mr. D. Hasitha S. Jayawardena - Non - Independent, non executive director. To reconstitute and change the composition of the audit committee:- Mr. H.M.A. Jayesinghe - Chairperson - Independent, non executive director, Mr. J.T.M. Cooray - Independent, non executive director and Mr. D. Hasitha S. Jayawardena - Non - Independent, non executive director. To reconstitute and change the composition of the related party transaction review committee:- Mr. H.M.A. Jayesinghe - Chairperson - Independent, non executive director, Mr. J.T.M. Cooray - Independent, non executive director and Mr. D. Hasitha S. Jayawardena - Non - Independent, non executive director. Reported Earnings • Aug 16
First quarter 2025 earnings released: EPS: LK₨0.20 (vs LK₨0.61 in 1Q 2024) First quarter 2025 results: EPS: LK₨0.20 (down from LK₨0.61 in 1Q 2024). Revenue: LK₨3.94b (down 9.1% from 1Q 2024). Net income: LK₨80.4m (down 67% from 1Q 2024). Profit margin: 2.0% (down from 5.7% in 1Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 18% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Jun 05
Full year 2024 earnings released: EPS: LK₨4.41 (vs LK₨2.97 in FY 2023) Full year 2024 results: EPS: LK₨4.41 (up from LK₨2.97 in FY 2023). Revenue: LK₨16.8b (up 18% from FY 2023). Net income: LK₨2.27b (up 91% from FY 2023). Profit margin: 14% (up from 8.4% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 27% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to LK₨28.00, the stock trades at a trailing P/E ratio of 5.6x. Average trailing P/E is 7x in the Food industry in Sri Lanka. Total returns to shareholders of 109% over the past three years. Reported Earnings • Feb 16
Third quarter 2024 earnings released: EPS: LK₨20.33 (vs LK₨0.48 in 3Q 2023) Third quarter 2024 results: EPS: LK₨20.33 (up from LK₨0.48 in 3Q 2023). Revenue: LK₨4.27b (up 12% from 3Q 2023). Net income: LK₨813.4m (up 323% from 3Q 2023). Profit margin: 19% (up from 5.1% in 3Q 2023). Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Nov 21
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to LK₨233, the stock trades at a trailing P/E ratio of 6.7x. Average trailing P/E is 6x in the Food industry in Sri Lanka. Total returns to shareholders of 103% over the past three years. Reported Earnings • Nov 16
Second quarter 2024 earnings released: EPS: LK₨21.75 (vs LK₨0.92 in 2Q 2023) Second quarter 2024 results: EPS: LK₨21.75 (up from LK₨0.92 in 2Q 2023). Revenue: LK₨4.37b (up 16% from 2Q 2023). Net income: LK₨869.9m (up LK₨833.2m from 2Q 2023). Profit margin: 20% (up from 1.0% in 2Q 2023). Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 17% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Nov 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Sri Lankan stocks, typically moving 5.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (23% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (5.8% average weekly change). Profit margins are more than 30% lower than last year (3.4% net profit margin). Market cap is less than US$100m (LK₨8.50b market cap, or US$25.9m). Anuncio • Aug 24
Lanka Milk Foods (CWE) PLC, Annual General Meeting, Sep 12, 2023 Lanka Milk Foods (CWE) PLC, Annual General Meeting, Sep 12, 2023, at 10:00 Sri Lanka Standard Time. Agenda: To receive and consider the Report of the Directors, the Financial Statements of the Company for the year ended 31 March 2023 with the Auditors' Report thereon; to re-elect Ms. Stasshani Jayawardena who retires by rotation at the Annual General Meeting in terms of Article No.94 of the Articles of Association, as a Director of the Company; to re-elect Mr. D.H.S. Jayawardena, who is over the age of 70 years and who retires in terms of sections 210 and 211 of the Companies Act No. 7 of 2007 as a Director of the Company; to re-appoint Messrs. KPMG, (Chartered Accountants) as the Auditors for the ensuing year and to authorize the Directors to determine their remuneration; and to authorize the Directors to determine payments for the year 2024, for charitable and other purposes, as set out in the Company's Donations Act (Cap 147). New Risk • Aug 15
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 3.4% Last year net profit margin: 13% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (23% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (3.4% net profit margin). Market cap is less than US$100m (LK₨6.52b market cap, or US$20.3m). Reported Earnings • Aug 15
First quarter 2024 earnings released: EPS: LK₨6.13 (vs LK₨22.08 in 1Q 2023) First quarter 2024 results: EPS: LK₨6.13 (down from LK₨22.08 in 1Q 2023). Revenue: LK₨4.34b (up 38% from 1Q 2023). Net income: LK₨245.2m (down 72% from 1Q 2023). Profit margin: 5.7% (down from 28% in 1Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 24% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Jun 02
Full year 2023 earnings released: EPS: LK₨28.83 (vs LK₨26.63 in FY 2022) Full year 2023 results: EPS: LK₨28.83 (up from LK₨26.63 in FY 2022). Revenue: LK₨14.0b (up 44% from FY 2022). Net income: LK₨1.15b (up 8.3% from FY 2022). Profit margin: 8.2% (down from 11% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Apr 06
Upcoming dividend of LK₨5.00 per share at 3.4% yield Eligible shareholders must have bought the stock before 12 April 2023. Payment date: 05 May 2023. Payout ratio is a comfortable 10% but the company is not cash flow positive. Trailing yield: 3.4%. Lower than top quartile of Sri Lankan dividend payers (8.0%). Lower than average of industry peers (5.4%). Reported Earnings • Feb 16
Third quarter 2023 earnings released: EPS: LK₨4.81 (vs LK₨14.01 in 3Q 2022) Third quarter 2023 results: EPS: LK₨4.81 (down from LK₨14.01 in 3Q 2022). Revenue: LK₨3.80b (up 54% from 3Q 2022). Net income: LK₨192.5m (down 66% from 3Q 2022). Profit margin: 5.1% (down from 23% in 3Q 2022). Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 16
Second quarter 2023 earnings released: EPS: LK₨0.92 (vs LK₨2.28 in 2Q 2022) Second quarter 2023 results: EPS: LK₨0.92 (down from LK₨2.28 in 2Q 2022). Revenue: LK₨3.76b (up 67% from 2Q 2022). Net income: LK₨36.7m (down 60% from 2Q 2022). Profit margin: 1.0% (down from 4.1% in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 62% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 5 highly experienced directors. 3 independent directors (4 non-independent directors). Non- Independent Non-Executive Director Don Hasitha Jayawardena was the last independent director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Nov 13
Second quarter 2023 earnings released: EPS: LK₨0.92 (vs LK₨2.28 in 2Q 2022) Second quarter 2023 results: EPS: LK₨0.92 (down from LK₨2.28 in 2Q 2022). Revenue: LK₨3.76b (up 67% from 2Q 2022). Net income: LK₨36.7m (down 60% from 2Q 2022). Profit margin: 1.0% (down from 4.1% in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 62% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Anuncio • Sep 01
Lanka Milk Foods (CWE) PLC, Annual General Meeting, Sep 20, 2022 Lanka Milk Foods (CWE) PLC, Annual General Meeting, Sep 20, 2022, at 10:00 Sri Lanka Standard Time. Location: Lanka Milk Foods (CWE) PLC Welisara Ragama Sri Lanka Reported Earnings • Aug 16
First quarter 2023 earnings released: EPS: LK₨22.08 (vs LK₨13.83 in 1Q 2022) First quarter 2023 results: EPS: LK₨22.08 (up from LK₨13.83 in 1Q 2022). Revenue: LK₨3.14b (up 36% from 1Q 2022). Net income: LK₨883.0m (up 60% from 1Q 2022). Profit margin: 28% (up from 24% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 76% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 15
Investor sentiment improved over the past week After last week's 17% share price gain to LK₨150, the stock trades at a trailing P/E ratio of 5.5x. Average trailing P/E is 6x in the Food industry in Sri Lanka. Total returns to shareholders of 70% over the past three years. Reported Earnings • Jun 02
Full year 2022 earnings released: EPS: LK₨27.37 (vs LK₨21.05 in FY 2021) Full year 2022 results: EPS: LK₨27.37 (up from LK₨21.05 in FY 2021). Revenue: LK₨9.98b (up 31% from FY 2021). Net income: LK₨1.09b (up 30% from FY 2021). Profit margin: 11% (in line with FY 2021). Over the last 3 years on average, earnings per share has increased by 87% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 18
Investor sentiment improved over the past week After last week's 15% share price gain to LK₨135, the stock trades at a trailing P/E ratio of 4x. Average trailing P/E is 8x in the Food industry in Sri Lanka. Total returns to shareholders of 57% over the past three years. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 1 experienced director. 5 highly experienced directors. 3 independent directors (4 non-independent directors). Non- Independent Non-Executive Director Don Hasitha Jayawardena was the last independent director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Mar 30
Investor sentiment deteriorated over the past week After last week's 16% share price decline to LK₨135, the stock trades at a trailing P/E ratio of 4x. Average forward P/E is 17x in the Food industry in Sri Lanka. Total returns to shareholders of 35% over the past three years. Valuation Update With 7 Day Price Move • Mar 08
Investor sentiment deteriorated over the past week After last week's 18% share price decline to LK₨166, the stock trades at a trailing P/E ratio of 4.9x. Average forward P/E is 17x in the Food industry in Sri Lanka. Total returns to shareholders of 51% over the past three years. Reported Earnings • Feb 17
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: LK₨14.01 (up from LK₨11.17 in 3Q 2021). Revenue: LK₨2.48b (up 28% from 3Q 2021). Net income: LK₨560.3m (up 25% from 3Q 2021). Profit margin: 23% (in line with 3Q 2021). Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 11%, compared to a 12% growth forecast for the industry in Sri Lanka. Over the last 3 years on average, earnings per share has increased by 89% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Dec 15
Investor sentiment improved over the past week After last week's 18% share price gain to LK₨261, the stock trades at a trailing P/E ratio of 8.4x. Average forward P/E is 17x in the Food industry in Sri Lanka. Total returns to shareholders of 112% over the past three years. Valuation Update With 7 Day Price Move • Nov 30
Investor sentiment improved over the past week After last week's 18% share price gain to LK₨204, the stock trades at a trailing P/E ratio of 6.6x. Average forward P/E is 17x in the Food industry in Sri Lanka. Total returns to shareholders of 55% over the past three years. Reported Earnings • Nov 15
Second quarter 2022 earnings released: EPS LK₨2.28 (vs LK₨4.05 in 2Q 2021) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2022 results: Revenue: LK₨2.25b (up 14% from 2Q 2021). Net income: LK₨91.3m (down 44% from 2Q 2021). Profit margin: 4.1% (down from 8.2% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 81% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Sep 24
Upcoming dividend of LK₨5.00 per share Eligible shareholders must have bought the stock before 01 October 2021. Payment date: 14 October 2021. Trailing yield: 2.9%. Lower than top quartile of Sri Lankan dividend payers (5.8%). Lower than average of industry peers (3.3%). Reported Earnings • Aug 18
First quarter 2022 earnings released: EPS LK₨13.83 (vs LK₨2.23 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: LK₨2.32b (up 20% from 1Q 2021). Net income: LK₨553.3m (up LK₨464.1m from 1Q 2021). Profit margin: 24% (up from 4.6% in 1Q 2021). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 27
Full year 2021 earnings released: EPS LK₨20.34 (vs LK₨7.53 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: LK₨7.73b (up 15% from FY 2020). Net income: LK₨813.4m (up 170% from FY 2020). Profit margin: 11% (up from 4.5% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment improved over the past week After last week's 16% share price gain to LK₨180, the stock trades at a trailing P/E ratio of 9.4x. Average trailing P/E is 10x in the Food industry in Sri Lanka. Total returns to shareholders of 16% over the past three years. Reported Earnings • Feb 11
Third quarter 2021 earnings released: EPS LK₨11.17 (vs LK₨5.63 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: LK₨1.93b (up 15% from 3Q 2020). Net income: LK₨446.7m (up 99% from 3Q 2020). Profit margin: 23% (up from 13% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 4% per year. Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorated over the past week After last week's 18% share price decline to LK₨156, the stock is trading at a trailing P/E ratio of 11.3x, down from the previous P/E ratio of 13.9x. This compares to an average P/E of 13x in the Food industry in Sri Lanka. Total returns to shareholders over the past three years are 7.9%. Is New 90 Day High Low • Jan 15
New 90-day high: LK₨158 The company is up 27% from its price of LK₨125 on 16 October 2020. The Sri Lankan market is up 26% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Food industry, which is up 38% over the same period. Is New 90 Day High Low • Dec 28
New 90-day high: LK₨143 The company is up 27% from its price of LK₨113 on 29 September 2020. The Sri Lankan market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Food industry, which is up 4.0% over the same period. Is New 90 Day High Low • Dec 08
New 90-day high: LK₨141 The company is up 58% from its price of LK₨89.20 on 09 September 2020. The Sri Lankan market is up 22% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Food industry, which is up 31% over the same period. Reported Earnings • Nov 14
Second quarter 2021 earnings released: EPS LK₨4.05 The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: LK₨1.97b (up 14% from 2Q 2020). Net income: LK₨161.9m (up LK₨165.1m from 2Q 2020). Profit margin: 8.2% (up from net loss in 2Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Nov 06
Market bids up stock over the past week After last week's 16% share price gain to LK₨134, the stock is trading at a trailing P/E ratio of 13.7x, up from the previous P/E ratio of 11.8x. This compares to an average P/E of 12x in the Food industry in Sri Lanka. Total return to shareholders over the past three years is a loss of 9.5%. Is New 90 Day High Low • Nov 05
New 90-day high: LK₨128 The company is up 60% from its price of LK₨80.10 on 07 August 2020. The Sri Lankan market is up 15% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Food industry, which is up 33% over the same period. Valuation Update With 7 Day Price Move • Oct 14
Market bids up stock over the past week After last week's 15% share price gain to LK₨115, the stock is trading at a trailing P/E ratio of 11.8x, up from the previous P/E ratio of 10.2x. This compares to an average P/E of 11x in the Food industry in Sri Lanka. Total return to shareholders over the past three years is a loss of 19%. Is New 90 Day High Low • Oct 02
New 90-day high: LK₨114 The company is up 44% from its price of LK₨79.50 on 03 July 2020. The Sri Lankan market is up 19% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Food industry, which is up 43% over the same period. Upcoming Dividend • Sep 25
Upcoming Dividend of LK₨2.50 Per Share Will be paid on the 12th of October to those who are registered shareholders by the 2nd of October. The trailing yield of 2.3% is below the top quartile of Sri Lankan dividend payers (5.5%), and is lower than industry peers (2.7%). 
