Lanka Milk Foods (CWE) PLC (LMF) has posted small losses both at group and company levels in the first quarter of the current financial year ended June 30, 2008 with the group posting a loss of Rs.2.2 million, down from a profit of Rs.8.9 million a year earlier while the company posted a loss of Rs.7.7 million, down from a profit of Rs.14.2 million in the comparative period the previous year.

In addition to its milk powder import and distribution business, LMF has milk producing and processing subsidiaries – Lanka Dairies, Danish Dairy Products, Abewela Livestock, Pattiplola Livestoc and Ambewela Products.

Turnover for the group during the year was up to Rs.859.1 million from Rs.812.5 million with distribution expenses down to Rs.36.3 million from Rs.43 million and administrative expenses up to Rs.39.6 million from Rs.35.5 million.

The group reported an operating profit of Rs.41.3 million, up from Rs.37.2 million a year earlier, while the company had an operating profit of Rs.30.3 million, down from Rs.36.4 million in the previous year’s first quarter.

Finance cost had gone up sharply at both at group and company levels, an interim financial statement now with shareholders reveals.

LMF has a stated capital of Rs.300 million, reserves of Rs.215.1 million and retained earnings of Rs.527.6 million. Interest bearing borrowings were running at Rs.189.2 million as at June 30, 2008.