Singer revenue in 1Q up 13% to Rs. 13.6 b despite challenging environment

Singer (Sri Lanka) Plc yesterday announced a 13% increase in revenue to Rs. 13.6 billion in the first quarter of 2018 in spite of challenging business conditions.

In the period under review for the three months ended 31 March 2018, profit before tax was Rs. 419.8 million, recording a slight growth of 3% over the previous year. However, corporate taxes increased during the period under review as subsidiaries declared dividends resulting in withholding tax. As a result, the profit after tax for the period decreased by 14%. 

At the same time, dividends boosted the results of the parent company and the profits for the quarter increased by 51% to Rs. 481.9 million. 

The Accounting Year of the Group has changed to 31 March to be in line with the accounting period of the Hayleys Plc Group and the group revenue recorded for the 15 months was Rs. 65.1 billion. The profit for the 15 months was Rs. 1.2 billion. 

The company anticipates improvements in the Business Conditions during 2018 and will pursue strategies to improve revenue and margins while lowering costs via key business initiatives which are: 

- To grow the e-commerce business and to assist in the last mile delivery of e-commerce through Singer’s extensive network.

- To grow the furniture business exponentially with a wider range available in a larger range of showrooms.

- To accelerate the renovation and expansion of existing shops to increase the retail space to cater to additional products and brands, specifically furniture.

- To strengthen and enlarge the company’s manufacturing operations with new factories, additional machinery and more advanced technology.

- New initiatives have been launched to extend customer reach and satisfaction.

Commenting on the results, Singer Sri Lanka Group CEO Asoka Pieris said: “After a smooth change of ownership, Singer is successfully continuing to retain market leadership in consumer durables. We believe that with synergies with Hayleys Group and with new strategies and initiatives a bright future augurs for the Singer Group and our stakeholders.” 

Hayleys Group Chairman Mohan Pandithage said: “Hayleys Group as the major shareholder is confident that Singer’s position as the leader in consumer durables will be strengthened as Hayleys and Singer have an excellent strategic fit to benefit from significant growth prospects.”

The Board of Directors of Singer (Sri Lanka) Plc comprises Mohan Pandithage – Chairman, Dhammika Perera – Co-Chairman, Asoka Pieris – Group Chief Executive Officer, Deepal Sooriyaarachchi, Dumith Fernando, Gavin Walker, M.H. Jamaldeen, Sarath Ganegoda and Dilip de S. Wijeyeratne.