Singer 1H revenue increases by 14 per cent

Singer (Sri Lanka) PLC, announcing its results for the first half ending September, has said that despite “tough business conditions”, the results showed a “commendable” revenue growth of 14 per cent to Rs. 28.6 billion compared to the same period in the previous year.

In the period under review, the group profit before tax was Rs. 561 million while group net profit was Rs. 335 million. Excluding the impact of an exchange loss of Rs. 167 million, group net profit for the first half was Rs. 456 million.

Traditional high margin products had low growth and gross margins reduced to 27.8 per cent compared to 28.8 per cent last year. However the group successfully lowered selling and administration expenditure from 21.4 per cent last year to 20.9 per cent in the current year. The second quarter group revenue increased by 13 per cent and group operating profit increased by 7 per cent to Rs. 859 million compared to the prior year, the company said in a media release.

“While the business conditions remain challenging due to new import restriction and further devaluation, the company anticipates improvements following expected improved harvest and pick up in the agriculture related industries,” it said.

Commenting on the results, Mahesh Wijewardene, the newly appointed group CEO, said: “Although the business environment is challenging, Singer is confident of increasing market share and maintaining our market leadership in consumer durables.”

Group Chairman, Mohan Pandithage said: “Hayleys Group, as the major shareholder, is confident of Singer’s continued growth and leadership in the consumer durables industry. With the combined synergies of Hayleys Group and Singer Group we can anticipate significant growth from our new key business initiatives.”

Singer (Sri Lanka) Group is the largest retailer, financier and manufacturer of consumer durables in Sri Lanka, has 434 retail stores and serves over 2800 dealers/ sub retailers.