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Lee Reports 51.31% Increase in NET Profit for the Year 2005

Published on 26 February, 2006, Last updated at 11:05 GMT
 

Lee Feed Mill Plc., one of Thailand’s leading feed mills, recently announced its reviewed results for fiscal year 2005.

CONSOLIDATED OPERATIONAL HIGHLIGHTS

Ended 31st December

2005 2004

Total revenue ( Baht millions) 2,979.76 2,682.62

Net profit (Baht millions) 225.46 149.01

Earnings per share (Baht) 0.31 0.20

Book value per share (Baht) 2.06 1.93

HIGHLIGHTS

Financial Performance

* Total revenues for the year ended 31st December 2005 were Baht 2,979.76 million, an increase of 11.08 per cent from last year. The improvement in revenues was due to a higher sales volume of animal feed, especially aquatic feed. Meanwhile, in October 2004 Lee temporarily suspended its hatchery operations for the breeding of day-old chicks, and this halted losses in this area. This resulted in a loss in 2004 of Baht 32 million and a loss in 2005 of Baht 3 million, a decrease of 90.63 per cent. The Company continued to use its chicken farm for the treatment of layers in order to maintain its operations. Another available option may be the selling or renting out of the hatchery.

* Net profit totalled Baht 225.46 million for the year ended 31st December 2005, which increased by 51.31 per cent from last year because of an increase in the capability to control costs of the feed mill business, as reflected by an increase in the gross margin from 12.31 per cent in 2004 to 14.18 per cent in 2005, as well as an increase in the sales volume of aquatic feed.

* The Company was able to improve its overall status in 2005 owing to an increase in its pig population, an increase in demand for fish and shrimp feed and an increase in fish consumption due to the outbreak of bird flu, which is continuing and showing no signs of subsiding. This has helped lead to continuous growth in the Company’s sales of fish and shrimp feed.

Our balance sheet remains very strong

* We had roughly Baht 152.09 million in cash reserves and no bank loans as of 31st December 2005.

* Shareholders’ equity was Baht 1,512.83 million, or an increase of 6.67 per cent from the end of 2004.

* The Company’s liquidity ratio was 4.44 times, and the debt to equity ratio was 0.13 times.

The Future – Feedmill Industry

* Due to the increase in the pig population in 2005, sales are expected to increase in 2006.

* An increase in the number of aquatic animal raisers in 2005 will result in a continuing increase in aquatic feed sales.

* Competition in sales of animal feed in 2006 will be intense, because at the end of 2005, pig raisers experienced an epidemic of the Respiratory diseases and the Foot and mouth disease in the eastern area of the country, which caused significant damage. The Company therefore expects a decrease in the volume of pigs raised as well as a reoccurrence of bird flu, including an expansion of the operations of aquatic feed mill competitors, which will commence producing at full capacity in 2006. As the market size of aquatic feed is not large, this business will not lead to a significant increase in market share.

Management’s comments

Khun Nipon Leelasithorn, the Chief Executive Director and Managing Director of Lee, said: “Bird flu continued to have a significant effect on our sales and profits in 2004. However, the feed mill industry began to improve in 2005, and the volume of aquatic feed, in particular, has increased this year. Government support has also enhanced the overall feed mill market. Management therefore expects a further improvement in the Company’s performance in 2006.”

More about the Company

Lee’s shares are listed on the Stock Exchange of Thailand. Further details can be obtained from Lee’s website at www.leepattana.com.

ISSUED BY SEAMICO SECURITIES PRESS DISTRIBUTION SERVICE AT THE REQUEST OF THE COMPANY

PRESS ENQUIRIES

Lee Feed Mill Plc.

Khun Nipon Leelasithorn

Chief Executive Director & Managing Director

28th Floor, Wall Street Tower

33/137 Surawongse Road

Bangkok 10500

Tel: +66 (0) 2632-7300

Fax: +66 (0) 2236-7751

Email: nipon@leepattana.com

Seamico Securities Plc.

Mr. Robert W. McMillen

President

16th Floor, Liberty Square

287 Silom Road

Bangkok 10500

Tel: +66 (0) 2695-5153

Fax: +66 (0) 2631-1708

Email:rwm@seamico.co.th

Seamico Securities Plc.

Khun Wichan Rattanakittiaporn

First Vice President

16th Floor, Liberty Square

287 Silom Road

Bangkok 10500

Tel: +66 (0) 2695-5162

Fax: +66 (0) 2631-1708

Email:wichanr@seamico.co.th

 

 
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