Lanka Milk Foods (CWE) PLC, a major player in the country’s milk industry, has more than tripled profits in the year ended March 31, 2017, posting an after tax profit of Rs. 542 million, up from Rs. 120.6 million a year earlier.
The LMF Group which includes five subsidiaries is into importing, packing, manufacturing, distributing and marketing some of the country’s best known dairy and beverage brands.
Originally a government owned company that was privatized, the Harry Jayawardena-led and controlled LMF owned 12% of the cash rich Distilleries Company of Sri Lanka but during the year under review swapped this holding for over 151.8 million shares of Melstacorp PLC, now the holding company of Distilleries.
"Every government needs to reiterate its unconditional support for the dairy industry," Jayawardena said in the latest LMF report, "since it saves foreign exchange, contributes to jobs, investment and most important of all, is an industry which provides the nation with a wide range of nutritious food."
He credited government for the continuing expansion of domestic milk production thanks to the thrust towards self-sufficiency of liquid milk. However production is yet insufficient to meet total demand at present.
He said that the milk powder segment continued to be challenged with global prices rising and a 15% VAT imposed on imported milk powder. While all costs continued to increase rapidly, the selling price of powdered milk had been controlled since March 2015 with government having no plans to increase the selling price "even in the future."
LMF runs a herd of 2,100 Ayrshire and Fresian cattle on 1,500 acres of grazing land at its Ambewela dairy farm upcountry located at an elevation of 6,000 feet above sea level. The farm enjoys an average 2,000 mm of rainfall annually with about 200 wet days a year.
The grazing land is cultivated with ryegrass, with an extraordinarily high protein content, and 16,000 litres of high quality milk is produced daily. LMF has invested over a billion rupees in its dairy processing factory at Ambewela which in addition to liquid milk produces cheese and yoghurt and a range of flavored milks.
"Ambewela farm milk is in high demand," Jayawardena said. "The demand for Ambewela yoghurt is beyond the capacity of the factory now. The latest products in the basket are drinking yoghurt, 100g spread cheese pack and 200g Ambewela butter cup."
He said all Ambewela products were of the best quality with an automated milking process and the milk untouched by human hands during the entire value addition process. LMF also produces and markets a range of ready-to-drink fruit juices manufactured from premium quality fruit pulps and concentrates.
Other than its own brands, LMF distributes imported products like Happy Cow cheese, Farley’s and the Heinz range of sauces.
Jayawardena’s daughter, Sanjeevani, executive director at LMF, said in the report that an unprecedented Rs. 5.3 billion turnover had been posted during the year.
"Repeating its outstanding performance from the preceding year, the liquid milk sector was the main contributor to our profitability," she said. "Lanka Dairies (Pvt) Ltd, and Ambewela Products (Pvt) Ltd. contributed admirably to deliver a remarkable income over the previous year, resulting in the group recording an unprecedented turnover of Rs. 5.3 billion."
"We are confident about the future of the group because of the total backward integration that characterizes our business. Having total control of our products from farm to table, we are in an exceptional position to deliver our promise of hygiene, taste and wholesome goodness," she said.
LMF has a stated capital of Rs. 999.95 million, assets of Rs. 12.96 billion and liabilities of Rs. 1.15 billion in its books. Net assets per share at Rs. 295.01 were up from the previous year’s Rs. 253.69. The share closed the year at Rs. 117, up from Rs. 114.50 the previous year.
Milford Exports with 33.57% of the company is the top shareholder followed by Melstacorp (16.78%) and Mills Enterprises 15.30%. All other shareholders individually owned less than 3.5%.
The directors of the company are: Messrs. DHS Jayawardena (Chairman), CR Jansz, Ms. DSC Jayawardena, DSK Amarasekera (Independent non-executive), Dr. A. Shakthevale (Independent non-executive) and D. Hasitha, S. Jayawardena (non-executive).
The LMF Group which includes five subsidiaries is into importing, packing, manufacturing, distributing and marketing some of the country’s best known dairy and beverage brands.
Originally a government owned company that was privatized, the Harry Jayawardena-led and controlled LMF owned 12% of the cash rich Distilleries Company of Sri Lanka but during the year under review swapped this holding for over 151.8 million shares of Melstacorp PLC, now the holding company of Distilleries.
"Every government needs to reiterate its unconditional support for the dairy industry," Jayawardena said in the latest LMF report, "since it saves foreign exchange, contributes to jobs, investment and most important of all, is an industry which provides the nation with a wide range of nutritious food."
He credited government for the continuing expansion of domestic milk production thanks to the thrust towards self-sufficiency of liquid milk. However production is yet insufficient to meet total demand at present.
He said that the milk powder segment continued to be challenged with global prices rising and a 15% VAT imposed on imported milk powder. While all costs continued to increase rapidly, the selling price of powdered milk had been controlled since March 2015 with government having no plans to increase the selling price "even in the future."
LMF runs a herd of 2,100 Ayrshire and Fresian cattle on 1,500 acres of grazing land at its Ambewela dairy farm upcountry located at an elevation of 6,000 feet above sea level. The farm enjoys an average 2,000 mm of rainfall annually with about 200 wet days a year.
The grazing land is cultivated with ryegrass, with an extraordinarily high protein content, and 16,000 litres of high quality milk is produced daily. LMF has invested over a billion rupees in its dairy processing factory at Ambewela which in addition to liquid milk produces cheese and yoghurt and a range of flavored milks.
"Ambewela farm milk is in high demand," Jayawardena said. "The demand for Ambewela yoghurt is beyond the capacity of the factory now. The latest products in the basket are drinking yoghurt, 100g spread cheese pack and 200g Ambewela butter cup."
He said all Ambewela products were of the best quality with an automated milking process and the milk untouched by human hands during the entire value addition process. LMF also produces and markets a range of ready-to-drink fruit juices manufactured from premium quality fruit pulps and concentrates.
Other than its own brands, LMF distributes imported products like Happy Cow cheese, Farley’s and the Heinz range of sauces.
Jayawardena’s daughter, Sanjeevani, executive director at LMF, said in the report that an unprecedented Rs. 5.3 billion turnover had been posted during the year.
"Repeating its outstanding performance from the preceding year, the liquid milk sector was the main contributor to our profitability," she said. "Lanka Dairies (Pvt) Ltd, and Ambewela Products (Pvt) Ltd. contributed admirably to deliver a remarkable income over the previous year, resulting in the group recording an unprecedented turnover of Rs. 5.3 billion."
"We are confident about the future of the group because of the total backward integration that characterizes our business. Having total control of our products from farm to table, we are in an exceptional position to deliver our promise of hygiene, taste and wholesome goodness," she said.
LMF has a stated capital of Rs. 999.95 million, assets of Rs. 12.96 billion and liabilities of Rs. 1.15 billion in its books. Net assets per share at Rs. 295.01 were up from the previous year’s Rs. 253.69. The share closed the year at Rs. 117, up from Rs. 114.50 the previous year.
Milford Exports with 33.57% of the company is the top shareholder followed by Melstacorp (16.78%) and Mills Enterprises 15.30%. All other shareholders individually owned less than 3.5%.
The directors of the company are: Messrs. DHS Jayawardena (Chairman), CR Jansz, Ms. DSC Jayawardena, DSK Amarasekera (Independent non-executive), Dr. A. Shakthevale (Independent non-executive) and D. Hasitha, S. Jayawardena (non-executive).
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