New Risk • Apr 03
New major risk - Revenue and earnings growth Earnings have declined by 2.2% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 166% Cash payout ratio: 194% Earnings have declined by 2.2% per year over the past 5 years. Valuation Update With 7 Day Price Move • Mar 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to LK₨43.00, the stock trades at a trailing P/E ratio of 16.5x. Average trailing P/E is 10x in the Food industry in Sri Lanka. Total returns to shareholders of 347% over the past three years. Declared Dividend • Nov 06
Dividend of LK₨1.70 announced Shareholders will receive a dividend of LK₨1.70. Ex-date: 14th November 2025 Payment date: 3rd December 2025 Dividend yield will be 8.3%, which is higher than the industry average of 5.3%. Sustainability & Growth Dividend is not covered by earnings (202% earnings payout ratio) nor is it covered by cash flows (158% cash payout ratio). The dividend has increased by an average of 28% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 124% to bring the payout ratio under control, which is more than the 17% EPS growth achieved over the last 5 years. Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to LK₨44.40, the stock trades at a trailing P/E ratio of 20.8x. Average trailing P/E is 11x in the Food industry in Sri Lanka. Total returns to shareholders of 346% over the past three years. Upcoming Dividend • Jun 23
Upcoming dividend of LK₨1.30 per share Eligible shareholders must have bought the stock before 30 June 2025. Payment date: 18 July 2025. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 14%. Within top quartile of Sri Lankan dividend payers (5.3%). Higher than average of industry peers (4.2%). Declared Dividend • May 31
Dividend of LK₨1.30 announced Shareholders will receive a dividend of LK₨1.30. Ex-date: 30th June 2025 Payment date: 18th July 2025 Dividend yield will be 13%, which is higher than the industry average of 5.3%. Sustainability & Growth Dividend is not covered by earnings (184% earnings payout ratio) nor is it covered by cash flows (104% cash payout ratio). The dividend has increased by an average of 23% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 105% to bring the payout ratio under control, which is more than the 18% EPS growth achieved over the last 5 years. Reported Earnings • May 29
Full year 2025 earnings released: EPS: LK₨1.89 (vs LK₨2.32 in FY 2024) Full year 2025 results: EPS: LK₨1.89 (down from LK₨2.32 in FY 2024). Revenue: LK₨7.94b (down 4.5% from FY 2024). Net income: LK₨1.92b (down 19% from FY 2024). Profit margin: 24% (down from 28% in FY 2024). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. New Risk • Apr 26
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 6.3% 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 Dividend is not well covered by earnings and cash flows. Payout ratio: 184% Cash payout ratio: 117% Minor Risk Share price has been volatile over the past 3 months (6.3% average weekly change). New Risk • Mar 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 6.8% 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 Dividend is not well covered by earnings and cash flows. Payout ratio: 184% Cash payout ratio: 117% Minor Risks Share price has been volatile over the past 3 months (6.8% average weekly change). Market cap is less than US$100m (LK₨28.9b market cap, or US$97.6m). Upcoming Dividend • Mar 17
Upcoming dividend of LK₨1.40 per share Eligible shareholders must have bought the stock before 24 March 2025. Payment date: 11 April 2025. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 10%. Within top quartile of Sri Lankan dividend payers (5.8%). Higher than average of industry peers (4.2%). Reported Earnings • Feb 06
Third quarter 2025 earnings released: EPS: LK₨2.41 (vs LK₨2.79 in 3Q 2024) Third quarter 2025 results: EPS: LK₨2.41 (down from LK₨2.79 in 3Q 2024). Revenue: LK₨1.77b (down 6.3% from 3Q 2024). Net income: LK₨490.6m (down 14% from 3Q 2024). Profit margin: 28% (down from 30% in 3Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jan 10
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to LK₨141, the stock trades at a trailing P/E ratio of 16.5x. Average trailing P/E is 7x in the Food industry in Sri Lanka. Total returns to shareholders of 26% over the past three years. Buy Or Sell Opportunity • Jan 06
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 42% to LK₨132. The fair value is estimated to be LK₨110, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has declined by 19%. Declared Dividend • Nov 14
First half dividend of LK₨8.00 announced Shareholders will receive a dividend of LK₨8.00. Ex-date: 21st November 2024 Payment date: 10th December 2024 Dividend yield will be 14%, which is higher than the industry average of 5.3%. Sustainability & Growth Dividend is not covered by earnings (176% earnings payout ratio) nor is it covered by cash flows (104% cash payout ratio). The dividend has increased by an average of 41% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 96% to bring the payout ratio under control, which is more than the 13% EPS growth achieved over the last 5 years. Reported Earnings • Nov 12
Second quarter 2025 earnings released: EPS: LK₨2.11 (vs LK₨4.33 in 2Q 2024) Second quarter 2025 results: EPS: LK₨2.11 (down from LK₨4.33 in 2Q 2024). Revenue: LK₨2.19b (down 2.1% from 2Q 2024). Net income: LK₨429.0m (down 51% from 2Q 2024). Profit margin: 20% (down from 39% in 2Q 2024). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Nov 01
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 18% to LK₨104. The fair value is estimated to be LK₨85.37, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has declined by 9.9%. Board Change • Oct 11
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Non-Independent Non-Executive Director Madhu Ramachandra Rao was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 02
First quarter 2025 earnings released: EPS: LK₨2.85 (vs LK₨3.71 in 1Q 2024) First quarter 2025 results: EPS: LK₨2.85 (down from LK₨3.71 in 1Q 2024). Revenue: LK₨2.07b (down 12% from 1Q 2024). Net income: LK₨579.3m (down 23% from 1Q 2024). Profit margin: 28% (down from 32% in 1Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Announcement • Jun 26
Watawala Plantations plc Announces Retirement of Madhu Ramachandra Rao, Non-Independent, Non-Executive Director Watawala Plantations PLC informed that Mr. Madhu Ramachandra Rao, Non-Independent, Non-Executive director of the Company, has retired as a director of the Company with effect from 23 June 2024 upon the expiration of one year since the passing of the ordinary resolution at the annual general meeting held on 23rd June 2023 re-appointing him as a director in terms of section 211 (1) of the Companies Act No. 7 of 2007. Please note that Mr. Rao is a director of Sunshine Wilmar (Private) Limited, which is a shareholder of the Company holding (156,207,043) shares as at 23 June 2024. Upcoming Dividend • Jun 24
Upcoming dividend of LK₨7.00 per share Eligible shareholders must have bought the stock before 01 July 2024. Payment date: 18 July 2024. The company is paying out more than 100% of its profits and is paying out 78% of its cash flow. Trailing yield: 16%. Within top quartile of Sri Lankan dividend payers (7.8%). Higher than average of industry peers (5.3%). Buy Or Sell Opportunity • Jun 07
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 21% to LK₨96.10. The fair value is estimated to be LK₨78.92, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 24% over the last 3 years, while earnings per share has been flat. Announcement • May 31
Watawala Plantations PLC, Annual General Meeting, Jun 28, 2024 Watawala Plantations PLC, Annual General Meeting, Jun 28, 2024. Declared Dividend • May 31
Dividend increased to LK₨7.00 Dividend of LK₨7.00 is 75% higher than last year. Ex-date: 1st July 2024 Payment date: 18th July 2024 Dividend yield will be 16%, which is higher than the industry average of 5.3%. Sustainability & Growth Dividend is not covered by earnings (124% earnings payout ratio). However, it is covered by cash flows (83% cash payout ratio). The dividend has increased by an average of 32% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 38% to bring the payout ratio under control, which is more than the 23% EPS growth achieved over the last 5 years. Buy Or Sell Opportunity • Feb 28
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 8.3% to LK₨77.40. The fair value is estimated to be LK₨63.52, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 29% over the last 3 years. Earnings per share has grown by 6.3%. Buy Or Sell Opportunity • Feb 19
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 9.0% to LK₨77.50. The fair value is estimated to be LK₨63.52, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 29% over the last 3 years. Earnings per share has grown by 6.3%. Reported Earnings • Feb 14
Third quarter 2024 earnings released: EPS: LK₨2.79 (vs LK₨3.26 in 3Q 2023) Third quarter 2024 results: EPS: LK₨2.79 (down from LK₨3.26 in 3Q 2023). Revenue: LK₨1.89b (down 8.9% from 3Q 2023). Net income: LK₨568.2m (down 14% from 3Q 2023). Profit margin: 30% (down from 32% in 3Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 6% per year whereas the company’s share price has increased by 11% per year. Upcoming Dividend • Nov 13
Upcoming dividend of LK₨8.00 per share at 13% yield Eligible shareholders must have bought the stock before 20 November 2023. Payment date: 08 December 2023. Payout ratio is on the higher end at 99%, however this is supported by cash flows. Trailing yield: 13%. Within top quartile of Sri Lankan dividend payers (7.9%). Higher than average of industry peers (4.5%). Reported Earnings • Nov 11
Second quarter 2024 earnings released: EPS: LK₨4.33 (vs LK₨5.90 in 2Q 2023) Second quarter 2024 results: EPS: LK₨4.33 (down from LK₨5.90 in 2Q 2023). Revenue: LK₨2.24b (down 18% from 2Q 2023). Net income: LK₨879.6m (down 27% from 2Q 2023). Profit margin: 39% (down from 44% in 2Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Announcement • Oct 06
Watawala Plantations PLC Confirms the Resignation of Binesh Neomal Pananwala as CEO Watawala Plantations PLC confirmed the resignation of Binesh Neomal Pananwala as CEO, stating that it took effect on September 30, 2023. Pananwala currently holds the position of President All Island Dairy Association. He has over 31 years' experience in the plantation sector covering the tea, rubber, dairy, oil plam and other export development crops. Pananwala started his career as a Trainee Assistant Superintendent under the Janatha Estate Development Board in the year 1992 and was raised to the position of Chief Executive Officer. He is a strong business development professional with a M.Sc. in Crop Science from the University of Peradeniya and a MBA from the Manipal (Sikkim) University. Reported Earnings • Aug 04
First quarter 2024 earnings released: EPS: LK₨3.71 (vs LK₨3.61 in 1Q 2023) First quarter 2024 results: EPS: LK₨3.71 (up from LK₨3.61 in 1Q 2023). Revenue: LK₨2.36b (up 27% from 1Q 2023). Net income: LK₨755.3m (up 2.3% from 1Q 2023). Profit margin: 32% (down from 40% 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 29% per year but the company’s share price has increased by 37% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Jun 19
Upcoming dividend of LK₨4.00 per share at 14% yield Eligible shareholders must have bought the stock before 26 June 2023. Payment date: 18 July 2023. Payout ratio is on the higher end at 86%, and the cash payout ratio is above 100%. Trailing yield: 14%. Within top quartile of Sri Lankan dividend payers (8.6%). Higher than average of industry peers (6.0%). Announcement • Jun 02
Watawala Plantations plc Proposes Dividend Payment Watawala Plantations PLC proposed dividend of LKR 4.00 per share as recommended by the Board of directors at its Annual General Meeting be held on 23rd June 2023. Announcement • May 25
Watawala Plantations PLC, Annual General Meeting, Jun 23, 2023 Watawala Plantations PLC, Annual General Meeting, Jun 23, 2023. Agenda: To consider the final dividend for the financial year ended 31 March 2023. Reported Earnings • May 25
Full year 2023 earnings released: EPS: LK₨11.63 (vs LK₨17.00 in FY 2022) Full year 2023 results: EPS: LK₨11.63 (down from LK₨17.00 in FY 2022). Revenue: LK₨8.77b (up 35% from FY 2022). Net income: LK₨2.36b (down 32% from FY 2022). Profit margin: 27% (down from 53% 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 40% per year whereas the company’s share price has increased by 41% per year. Reported Earnings • Feb 14
Third quarter 2023 earnings released: EPS: LK₨3.26 (vs LK₨3.84 in 3Q 2022) Third quarter 2023 results: EPS: LK₨3.26 (down from LK₨3.84 in 3Q 2022). Revenue: LK₨2.07b (up 27% from 3Q 2022). Net income: LK₨663.0m (down 15% from 3Q 2022). Profit margin: 32% (down from 48% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has only increased by 43% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Dec 19
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 16%. The fair value is estimated to be LK₨96.27, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 32% over the last 3 years. Earnings per share has grown by 53%. Valuation Update With 7 Day Price Move • Dec 01
Investor sentiment improved over the past week After last week's 15% share price gain to LK₨76.00, the stock trades at a trailing P/E ratio of 4.4x. Average trailing P/E is 4x in the Food industry in Sri Lanka. Total returns to shareholders of 354% over the past three years. Upcoming Dividend • Nov 16
Upcoming dividend of LK₨6.00 per share Eligible shareholders must have bought the stock before 21 November 2022. Payment date: 12 December 2022. Payout ratio is a comfortable 46% but the company is paying out more than the cash it is generating. Trailing yield: 21%. Within top quartile of Sri Lankan dividend payers (8.5%). Higher than average of industry peers (3.9%). Reported Earnings • Nov 13
Second quarter 2023 earnings released: EPS: LK₨5.90 (vs LK₨5.73 in 2Q 2022) Second quarter 2023 results: EPS: LK₨5.90 (up from LK₨5.73 in 2Q 2022). Revenue: LK₨2.73b (up 36% from 2Q 2022). Net income: LK₨1.20b (up 3.2% from 2Q 2022). Profit margin: 44% (down from 58% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 41% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 04
First quarter 2023 earnings released: EPS: LK₨3.61 (vs LK₨3.56 in 1Q 2022) First quarter 2023 results: EPS: LK₨3.61 (up from LK₨3.56 in 1Q 2022). Revenue: LK₨1.85b (up 32% from 1Q 2022). Net income: LK₨738.1m (up 2.1% from 1Q 2022). Profit margin: 40% (down from 52% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 54% per year whereas the company’s share price has increased by 52% per year. Recent Insider Transactions • Jul 03
Independent Non-Executive Director recently bought LK₨1.0m worth of stock On the 24th of June, Albert Rasiah bought around 10k shares on-market at roughly LK₨103 per share. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Valuation Update With 7 Day Price Move • Jun 28
Investor sentiment deteriorated over the past week After last week's 16% share price decline to LK₨83.10, the stock trades at a trailing P/E ratio of 4.9x. Average trailing P/E is 5x in the Food industry in Sri Lanka. Total returns to shareholders of 506% over the past three years. Upcoming Dividend • Jun 20
Upcoming dividend of LK₨8.00 per share Eligible shareholders must have bought the stock before 27 June 2022. Payment date: 18 July 2022. Payout ratio is on the higher end at 82%, however this is supported by cash flows. Trailing yield: 17%. Within top quartile of Sri Lankan dividend payers (9.6%). Higher than average of industry peers (4.1%). Reported Earnings • Jun 01
Full year 2022 earnings released: EPS: LK₨17.01 (vs LK₨8.18 in FY 2021) Full year 2022 results: EPS: LK₨17.01 (up from LK₨8.18 in FY 2021). Revenue: LK₨6.47b (up 65% from FY 2021). Net income: LK₨3.46b (up 108% from FY 2021). Profit margin: 53% (up from 42% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has increased by 77% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • May 18
Investor sentiment improved over the past week After last week's 16% share price gain to LK₨102, the stock trades at a trailing P/E ratio of 6.7x. Average trailing P/E is 8x in the Food industry in Sri Lanka. Total returns to shareholders of 613% over the past three years. Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment improved over the past week After last week's 33% share price gain to LK₨92.30, the stock trades at a trailing P/E ratio of 6.1x. Average trailing P/E is 7x in the Food industry in Sri Lanka. Total returns to shareholders of 543% over the past three years. Board Change • Apr 27
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non-Executive Director Albert Rasiah was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Mar 30
Investor sentiment deteriorated over the past week After last week's 20% share price decline to LK₨93.80, the stock trades at a trailing P/E ratio of 6.2x. Average trailing P/E is 8x in the Food industry in Sri Lanka. Total returns to shareholders of 561% over the past three years. Valuation Update With 7 Day Price Move • Mar 02
Investor sentiment improved over the past week After last week's 17% share price gain to LK₨138, the stock trades at a trailing P/E ratio of 9.1x. Average trailing P/E is 9x in the Food industry in Sri Lanka. Total returns to shareholders of 963% over the past three years. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment deteriorated over the past week After last week's 27% share price decline to LK₨119, the stock trades at a trailing P/E ratio of 7.9x. Average trailing P/E is 10x in the Food industry in Sri Lanka. Total returns to shareholders of 748% over the past three years. Reported Earnings • Feb 05
Third quarter 2022 earnings: Revenues in line with analyst expectations Third quarter 2022 results: Revenue: LK₨1.63b (up 92% from 3Q 2021). Net income: LK₨780.9m (up 126% from 3Q 2021). Profit margin: 48% (up from 41% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has increased by 89% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jan 03
Investor sentiment improved over the past week After last week's 19% share price gain to LK₨138, the stock trades at a trailing P/E ratio of 10.7x. Average trailing P/E is 10x in the Food industry in Sri Lanka. Total returns to shareholders of 938% over the past three years. Valuation Update With 7 Day Price Move • Nov 17
Investor sentiment improved over the past week After last week's 40% share price gain to LK₨103, the stock trades at a trailing P/E ratio of 7.9x. Average trailing P/E is 8x in the Food industry in Sri Lanka. Total returns to shareholders of 640% over the past three years. Upcoming Dividend • Nov 15
Upcoming dividend of LK₨6.00 per share Eligible shareholders must have bought the stock before 22 November 2021. Payment date: 08 December 2021. Trailing yield: 6.3%. Within top quartile of Sri Lankan dividend payers (5.7%). Higher than average of industry peers (3.0%). Reported Earnings • Nov 12
Second quarter 2022 earnings released: EPS LK₨5.73 (vs LK₨2.51 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: LK₨2.00b (up 74% from 2Q 2021). Net income: LK₨1.16b (up 128% from 2Q 2021). Profit margin: 58% (up from 44% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has increased by 63% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Oct 26
Investor sentiment improved over the past week After last week's 16% share price gain to LK₨67.50, the stock trades at a trailing P/E ratio of 6.9x. Average trailing P/E is 8x in the Food industry in Sri Lanka. Total returns to shareholders of 338% over the past three years. Reported Earnings • Aug 05
First quarter 2022 earnings released The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: LK₨1.40b (up 44% from 1Q 2021). Net income: LK₨722.7m (up 78% from 1Q 2021). Profit margin: 52% (up from 42% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 29% per year whereas the company’s share price has increased by 33% per year. Upcoming Dividend • Jun 21
Upcoming dividend of LK₨3.00 per share Eligible shareholders must have bought the stock before 28 June 2021. Payment date: 15 July 2021. Trailing yield: 11%. Within top quartile of Sri Lankan dividend payers (5.5%). Higher than average of industry peers (3.4%). Announcement • Jun 03
Watawala Plantations PLC Recommends a Final Dividend Watawala Plantations PLC announced that at its AGM to be held on June 25, 2021, it will propose a final dividend of LKR 3.00 per share as recommended by the Board of directors. Reported Earnings • May 26
Full year 2021 earnings released: EPS LK₨8.18 (vs LK₨4.11 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: LK₨3.93b (up 18% from FY 2020). Net income: LK₨1.66b (up 100% from FY 2020). Profit margin: 42% (up from 25% in FY 2020). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 25% per year whereas the company’s share price has increased by 26% per year. Valuation Update With 7 Day Price Move • Feb 11
Investor sentiment deteriorated over the past week After last week's 15% share price decline to LK₨51.80, the stock is trading at a trailing P/E ratio of 7.9x, down from the previous P/E ratio of 9.4x. This compares to an average P/E of 11x in the Food industry in Sri Lanka. Total returns to shareholders over the past three years are 133%. Is New 90 Day High Low • Feb 11
New 90-day low: LK₨51.80 The company is down 10.0% from its price of LK₨57.30 on 13 November 2020. The Sri Lankan market is up 28% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Food industry, which is up 21% over the same period. Reported Earnings • Feb 04
Third quarter 2021 earnings released The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: LK₨846.1m (up 9.1% from 3Q 2020). Net income: LK₨345.6m (up 99% from 3Q 2020). Profit margin: 41% (up from 22% in 3Q 2020). The increase in margin was primarily driven by lower 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 30% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improved over the past week After last week's 15% share price gain to LK₨65.00, the stock is trading at a trailing P/E ratio of 11.5x, up from the previous P/E ratio of 10x. This compares to an average P/E of 11x in the Food industry in Sri Lanka. Total returns to shareholders over the past three years are 210%. Is New 90 Day High Low • Jan 15
New 90-day high: LK₨65.00 The company is up 66% from its price of LK₨39.10 on 16 October 2020. The Sri Lankan market is up 26% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Food industry, which is up 38% over the same period. Upcoming Dividend • Nov 16
Upcoming Dividend of LK₨3.00 Per Share Will be paid on the 10th of December to those who are registered shareholders by the 23rd of November. The company last paid an ordinary dividend in March 2019. The average dividend yield among industry peers is 2.2%. Recent Insider Transactions • Nov 14
Insider recently bought LK₨14m worth of stock On the 9th of November, T. Senthilverl bought around 263k shares on-market at roughly LK₨54.00 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought LK₨14m more in shares than they have sold in the last 12 months. Reported Earnings • Nov 14
Second quarter 2021 earnings released: EPS LK₨2.51 The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: LK₨1.15b (up 24% from 2Q 2020). Net income: LK₨511.2m (up 49% from 2Q 2020). Profit margin: 44% (up from 37% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 26% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Nov 06
Market bids up stock over the past week After last week's 25% share price gain to LK₨49.60, the stock is trading at a trailing P/E ratio of 10.3x, up from the previous P/E ratio of 8.2x. This compares to an average P/E of 12x in the Food industry in Sri Lanka. Total returns to shareholders over the past three years are 120%. Valuation Update With 7 Day Price Move • Nov 04
Market bids up stock over the past week After last week's 16% share price gain to LK₨42.10, the stock is trading at a trailing P/E ratio of 8.7x, up from the previous P/E ratio of 7.5x. This compares to an average P/E of 11x in the Food industry in Sri Lanka. Total returns to shareholders over the past three years are 85%. Is New 90 Day High Low • Nov 02
New 90-day high: LK₨42.30 The company is up 44% from its price of LK₨29.30 on 04 August 2020. The Sri Lankan market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Food industry, which is up 27% 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₨38.00, the stock is trading at a trailing P/E ratio of 7.9x, up from the previous P/E ratio of 6.8x. This compares to an average P/E of 11x in the Food industry in Sri Lanka. Total returns to shareholders over the past three years are 63%. Is New 90 Day High Low • Oct 02
New 90-day high: LK₨37.40 The company is up 36% from its price of LK₨27.60 on 03 July 2020. The Sri Lankan market is up 19% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Food industry, which is up 43% over the same period. 
