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    Three Acre Farms PLC is engaged in the sale of Day-Old-Chicks (DOCs), the operation of poultry breeder farms raising grandparent and parent stock and hatcheries, and commercial broiler farming. The main business of the Company is selective breeding, hatching and sale of commercial DOCs, both Broiler (for chicken meat) and Layer (for the production of table eggs); grandparent farm operation; importing grandparent DOCs, and technology breeding, among others. Its subsidiaries include Ceylon Pioneer Poultry Breeders Limited (CPPBL), which is engaged in renting out farms, and Millennium Multibreeder Farms (Private) Limited (MMF), which is engaged in poultry breeder farming and hatchery. Its farms include Meegoda Farm, Meegoda; Kosgama Farm; Aluthambalama, Kosgama; Halwathura Farm, Halwathura; Bulathsinhala Farm, Agaloya, Bulathsinhala; Hijra Farm-A, Pagoda, Beruwala, and Makuluwatte Farm, Waga. The farms operated by CPPBL include Nilambe Farm, Aswatta Farm and Wewelpanawa Farm.

  • #2
    Financial Performance- Period ended 30 June 2018

    Click image for larger version

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    Last edited by ruwan326; 08-13-2018, 12:17 PM.


    • #3
      The screen shot gives a quick runthrough of the most important numbers i need.
      "The best values today are often found in the stocks that were once hot and have since gone cold"


      • #4
        Again offers at Super Markets are coming up. This is the lean quarter, I think.


        • #5
          Some acquisitions made by TAFL and its parent GRAN in the fast are supporting their bottom lines now.

          The highest growth over the next five to 10 years (growth in income, cash or investment)? Gran,Tafl or Bfl?
          Market share here and regional foreign market (demand for products)?
          Production planning? Experience in the industry?
          Distribution channels and type of loyal customers that they have?

          Global trend: Currently, some poultry companies are having geographical advantage in certain regions over others. South Asia and East Asia are such two regions. The global poultry outlook has so far been quite good for most regions. EU trade restrictions, the Saudi standard, the China/Brazil dispute and NAFTA renegotiations could potentially impact the meat market. Local producers and exporters who sell in the EU and Saudi Arabia will face rising prices. Brazil will be the most affected country. Some Others will benefit most.

          The poultry industry has potential for expansion, both domestically and overseas. We will expand our production capacity by construction of new state-of-the-art farm and hatchery which will enable us to increase output to the quality and quantities needed to cater market demand. We will continue to upgrade bio-security and poultry health initiatives to maintain our livestock safe from diseases. These initiatives will further strengthen our core competencies and bring us closer to realising our mission and vision of achieving complete poultry integration synergies.
          Quoted from the Annual Report
          Last edited by MrGrowth; 08-25-2018, 05:00 AM.


          • #6
            At the moment the export market for us is closed, due to high COP. Short sighted policy framework by the regulators as well as inability of the local operators to effectively integrate to lower Raw Material cost remain a major issue.
            Simply put, BFL / GRAN & TAFL have to start a program to grow and/or buyback and process Maize. Unfortunately GRAN / TAFL management is not motivated to embark on this. Due to both internal and external reasons. Management bonus is structured on the bottom line, for instance if the group reports 1bn in profit, they stand to earn 8 months + salaries worth as bonus. They are not rewarded on achieving a set of key KPI's where revenue and profitability has a certain weightage but not the only criteria as in many top tier Orgs.
            At the end both BFL and GRAIN/TAFL are family controlled. Thus carries certain inherent weakness in terms of management. Don't we see the same issue with other family owned entities?


            • #7
              That is an interesting finding.

              I agree other than their limited exports we cannot export rapid rise in their export in the short run. Demand for their products mainly comes from the middle class population and the growing tourism sector. In addition poultry products have become popular over read meat in South Asia as a result of cultural value and cheap protein. I am looking forward to see their next phase over the next five years.

              I haven’t done much study on family oriented companies. In my view this type of business model is not suitable for everybody. However, some family owned entities are doing well. It is same with publicly own companies. They also can go bankrupt if they mismanage. Today some companies have become well known companies thanks to reputation (goodwill) made by family or friendly owners in the past.


              The 21 biggest family-owned businesses in the world

              I don’t mind if a company is publicly listed or privately(family) own as long as they provide good customer service and run their business well. If I am correct Perera and sons, Akbar Brothers and Maliban biscuits are family oriented businesses.If they list there will be great demand for their stocks.


              Last edited by MrGrowth; 08-25-2018, 01:27 PM. Reason: To add another link.


              • #8
                Thank you all for starting this discussion. Many important points exposed. Yes we do have an issue, in what you have highlighted. But then the GOSL is slowly addressing these points. To my understanding these have factored in very well in the CMP in all these poultry stocks isnt it. That could be a reason to trade 4 times of its earnings. So i need to draw some forward looking statements. Let us think for a moment, the Maize issue sorted out in the next budget. some of the critical issues had been sorted out by the current administration. Ex Fuel Formula, Now LPG pricing /concerns to be addressed shortly. I also like if GOSL put a plan on the Low cost Energy generation. This is another critical issue in my opinion that has to be addressed. The energy demand will rise, and how far we are ready to ensure the energy cost remain lower in the region. Another critical factor could be the Labour costs, ther can be acute shortage in this sector, and companies must be allowed to import from other south asian regions. Like in the middle eastern countries, there can be slightly higher salary scale for the locals. and i dont mind that.
                "The best values today are often found in the stocks that were once hot and have since gone cold"


                • #9
                  In my view main reason for poor share prices for quality listed poultry companies in the Colombo stock market is weak market situation. International scenario is completely different. There were strong demand for poultry stocks over the last four years and they are trading at PE ratios over 10, 20 and 40 now.
                  Last edited by MrGrowth; 08-25-2018, 01:00 PM.


                  • #10
                    Local dynamics are quite different to that of the foreign counter part. Locally the sectors is to an extent sheltered. Yes, poultry has tremendous potential globally.

                    I share the view that CMP is reflective of the current issues, But at the same time, what's going to trigger the next phase of growth ?


                    • #11
                      Like all other sectors high COP relative to the region, exacerbated by unintelligent policy framework negates next phase of growth.


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