Bairaha Farms, which sells processed meat, branded chicken, day old chicks and parent breeder chicks said revenues rose just 4.6 percent 3.0 billion rupees in 2013 while direct costs rose 5.6 percent to 2.61 billion rupees.
In 2012 when Sri Lanka's currency depreciated from 110 towards 130 to the US dollars following credit taken to subsidized energy, Bairaha's revenues rose 3.1 percent to 2.9 billion rupees and costs jumped 19.3 percent to 2.4 billion rupees.
The company said there was a "noticeable dip demand" by low and middle income consumers while demand was stable among high income segments, while raw material costs were high.
"The industry was characterized by many months of glut and excess production, as result of depressed demand for chicken meat," Bairaha Chairman M T A Furkhan told shareholders in the annual report.
"The quality of poultry feed available in the market deteriorated due to high prices that prevailed in the market for raw materials.