Richard Pieris Group records PBT of Rs. 2.58 b in FY15

The Richard Pieris Group ended its performance in the financial year 2014/15 reporting a Group Revenue of Rs. 37.8 b with a profit before tax of Rs. 2.58 b. The reported profit for the year does not include any gains of a capital nature.

The Retail Sector of the Group comprises Arpico Super centres and the network of Arpico outlets across the island. As usual the sector was very active during the period under review and opened its newest large format retail store in Kottawa. The sector also began commercial operations in four Arpico Daily outlets during this period.

The ‘Top Tips’ campaign continued to maintain its popularity amongst customers. A very vibrant and novel marketing campaign titled ‘Powerplay’ was carried out during the Cricket World Cup, which resulted the winners travelling to Australia to witness the Cricket World Cup final at MCG.

The Plastics and Distribution Sector had a very successful year, reporting growths in terms of both revenue and profits when compared with the previous year. The sector continued to dominate the market place in water tanks with heavy media campaigns to support its initiatives. The hybrid mattress introduced to the market in the third quarter continued to gain momentum and is perceived as an innovative brand.

The Plantation Sector of the Group faced many challenges during 2014/15 with adverse weather conditions and low prices. The Richard Pieris Group possesses three of the largest plantation companies in the country with diverse crops which includes high grown, mid grown and low grown tea, rubber, oil palm, coconut, cinnamon, cardamom, rambutan and other crops contributing to more than 15% of Group turnover.

The Plantation Sector was adversely affected by low prices and production volumes. There was an increase in the price of oil palm during the year and there was an increase in the production volumes in tea, rubber and coconut during the fourth quarter of 2014/15 financial year.

The Tyre Sector of the Group had a remarkable year in its history reporting a business profit in excess of Rs. 500 m. This was achieved despite the fact of an overall decline in the re-treading business of tyres. Tyre sales of the brand Nexen continued to maintain popularity and several new tyre sizes were introduced by the sector during the period under review.

The Exports Sector of the Group continued its success story with another successful year. The sector continued to focus on many marketing activities and participated at international fairs and exhibitions. Continuous improvements were made on the reduction of wastage, energy and other overheads. The latex foam business of the sector commenced commercial operations of the world’s first 100% natural latex continuous sheet latex plant during the fourth quarter.

Though the Group is focused in its traditional businesses, diversification into financial services was successfully ventured over the past few years. At present Richard Pieris Group consists of its own life insurance, stock broking, fund management and a finance company.

Richard Pieris Finance Ltd. (RPFL) continued to expand its business base reaching a fixed deposit base of Rs. 2 b within two years of operations. It also carried away the Gold Award for Emerging Islamic Finance Entity of the Year for 2015. Arpico Insurance Company celebrated its third anniversary in January 2015 and after a successful IPO, the shares commenced trading during the same month.

The Group continues to focus on its core sectors whilst considering many opportunities for further expansions both locally and globally, a spokesman for the company said.

Richard Pieris & Co. PLC is a diversified business conglomerate with a rich history of 83 years. Its flagship brand Arpico is one of the most powerful local household brands in Sri Lanka for over 50 years, serving the community with a diverse range of products across many sectors such as manufacturing, plantations, financial services, exports, FMCG, construction, logistics and retail.

The retail sector led by its flagship brand Arpico Supercenters operates a growing network of outlets spread island-wide. Arpico Supercenters takes pride in pioneering the modern hypermarket retailing in Sri Lanka. Today Arpico Supercenters and Arpico Dailys are one of the largest modern trade chains in the country

A diverse melting pot of talent, comprising a workforce of over 35,000, Richard Pieris & Company PLC is one of the largest employment providers in the private sector in Sri Lanka.