Lanka Milk Foods (CWE) Limited (LMF), a major player in the local powdered milk industry which is also into dairy development, has boosted half year profitability both at group and company levels during the six months ended September 30, 2007.

LMF posted an attributable group profit of Rs.48.1 million during this period, up from Rs.37.6 million a year earlier on the back of a turnover of Rs.1.7 billion, up from Rs.1.6 billion in the comparative period the previous year.

At company level, turnover grew to Rs.1.5 billion from Rs.1.4 billion while the after-tax profit of Rs.63.3 million compared with Rs.43.7 million earned a year earlier.

LMF has five subsidiaries involved in domestic dairy production and processing – Lanka Dairies (Pvt) Ltd., Danish Dairy Products Lanka (Pvt) Ltd., Ambewela Livestock (Co.) Ltd., Pattipola Livestock (Co.) Ltd. and Ambewela Products (Pvt) Ltd.

The company imports and packets Lakspray milk powder, a lead brand, which is its core activity. LMF is also a 12% shareholder of the Distilleries Co. of Sri Lanka, among the leading conglomerates.

The half year results had been achieved in the face of volatile milk powder prices and price control of the product which presented a challenging environment for all importers and distributors of milk powder.

The company which has an issued share capital of Rs.300 million carried reserves of Rs.215.1 million and retained earnings of Rs.359.5 million in its books as at September 30, 2007.

Net assets per share had grown to Rs.29.15 from Rs.27.55 a year earlier while the LMF share traded at a high of Rs.46.75 and a low of Rs.30.50 during the second quarter. This compared with a trading range of Rs.31 to Rs.21.50 during the comparative period the previous year.