Sri Lanka's Three Acre Farms said March 2011 quarter group net profit was 41 million rupees (LKR) compared with just half-a-million rupees the year before although excess stocks forced it to cut prices, reports Lanka Business.

The poultry firm, a unit of Ceylon Grain Elevators, also a listed company and part of Singapore's Prima Group, said sales rose 38 per cent to LKR331 million from the previous year. Basic earnings per share were LKR1.75 in the quarter, up from 02 cents the year before.

Three Acre Farms said in a stock exchange filing of interim results accumulated losses carried forward fell to LKR435 million from LKR705 million rupees.

"The breeder operation made profit during the period under review due to productivity improvement in the breeder farms and hatcheries," a statement said.

"However, when compared with the final quarter of 2010, the company was compelled to reduce the selling prices of day-old-chicks due to the excess stocks in the market."

The poultry industry has been experiencing strong demand after the end of the island's ethnic war and a boom in tourism after a slump in 2009.

But there have been excess stocks in recent months after the government allowed chicken imports in the run up to the peak tourism season, according to Lanka Business.