Convenience Foods (Lanka) PLC (previously Soy Foods (Lanka)) has closed a successful year ended March 31, 2009 boosting turnover 44.6% and the after-tax profit 53.6% despite the challenges of a volatile year.

"We are poised to explore the potential of the likely economic upturn and due to repositioning ourselves as Convenience Foods (Lanka) PLC a wider product diversification strategy would be applied in the coming year," the company’s Chairman, Mr. M.P. Wickramasingha, told shareholders in the company’s recently released annual report.

He said that the year had brought unprecedented cost inflation – with the prices of defatted soy flour they import from India increasing by 44%. This was largely as a result of escalating petroleum prices and partly as a result of the global shift in using soy as bio fuel. Packing material too had increased.

The company’s main activity is the manufacture and marketing of textured vegetable protein (TVP), popularly known as soya meat, and other food products. The product line includes a quick soup, Rasa Hari, and jelly crystals.

Convenience Foods is a subsidiary of Ceylon Biscuits Limited, a company which Wickramasinha chairs.

Qualified in food technology in Borough Polytechnic, now known as the University of South Bank, UK, he was solely responsible for developing a high protein biscuit for CARE for the Ministry of Education. This was acknowledged by CARE who use this formula in other countries.

He is an entrepreneur who has been responsible for setting up many industries in the confectionery, canning and hospitality trades. He is the chairman of most of these industries including the holding company, Ceylon Biscuits Ltd and of Ceylon Biscuits (India) Pvt Ltd, with a factory in Punjab, India. He is the first Sri Lankan top start a consumer goods factory in India.

Discussing prospects for the current financial year, he said that they were optimistic about emerging markets in the North and East adding that the company would continue to diversify its product portfolio of convenient food offering a greater variety.

The company posted a turnover of Rs.837.4 million during the year under review, up from Rs.579.3 million the previous year and an after-tax profit of Rs.30.5 million, up 52.64% from Rs.19.8 million earned a year earlier.

This profit translated to earnings per share of Rs.11.08, up from Rs.7.21 the previous year.

Convenience Foods has a stated capital of Rs.52.5 million and retained earnings of Rs.92.1 million in its books. Total assets were running at Rs.230.2 million and total liabilities at Rs.85.5 million.

Net assets per share had grown to Rs.52.52 during the year up fromRs.42.74 the previous year while the share traded at a high of Rs.84 and a low of Rs.70. This compared to trading range of Rs.95 to Rs.56 the previous year.

Ceylon Biscuits with 71.4% of the company is the biggest shareholder followed by Vanik Corporate Services (6.1%) and Dawi Investment Trust (3.6%).

The directors of the company are: Messrs. M.P. Wickramasingha (Chairman), R.S. Wickramasingha, L.M.J. de Silva, D.S. Wickramasingha, E.T. de Zoysa, N.A. Wickramage, U. Thilakawardana and D.M.A. Kulasooriya.