Richard Pieris records turnover growth of 12%

Saturday, 17 November 2012 03:28 -     - {{hitsCtrl.values.hits}}

The Richard Pieris Group ended its first half year’s performance with steady group operating profits compared to the corresponding period of the previous year. The six months ended 30 September 2012 evidenced a positive performance in all its major sectors with the reported turnover surpassing Rs. 16 b which is yet another remarkable achievement.

Retail Sector: During the second quarter the sector opened its 15th large format retail outlet in the town of Piliyandala. The performance of the over 16,000 square foot store in Piliyandala during its infancy months has been very encouraging.

The retail sector continued with its vibrant marketing activities during the second quarter of the financial year 2012 2013 by having its very popular ‘Arpico Privilege Family Beach’ campaign and several other activities.

However, the company continued to see the effects on consumer confidence as a result of the depreciation of the currency, the increase in energy and fuel prices, etc., and as a result the company continued focusing heavily on managing overheads and inventory during the relevant quarter

Plastics and Distribution Sector: During the quarter the sector introduced a single layer mattress addressing the needs of the ‘value seekers’ segment of the market and carried out several dealer appreciation and recognition programs. The sector took part in the premier construction exhibition ‘Construct Expo 2012’ and was awarded the best stall.

Plantation Sector: Whilst the tea prices continued to increase, the decline in rubber prices affected the turnover of the Plantation Sector of the Group. Overall production in all major crops decreased in comparison to the similar period last year due to harsh weather conditions in terms of both drought and rain simultaneously affecting plucking and tapping in all plantation regions during this period.   

Tyre Sector: During the period under review the Tyre Company introduced two new brands of passenger car tyres to the market, namely ‘Xceed’ and ‘Nexen’. The latter is considered as the most up and coming brand in South Korea and is expected to perform well in Sri Lanka.

Rubber Manufacturing Sector: The Sector continued on the success achieved during the first quarter with both Richard Pieris Exports PLC and Richard Pieris Natural Foams performing exceedingly well. The influx of new management and results of various cost improvement and quality initiatives are now being reflected in the financial performance of the sector

The Group continues to capitalise on its solid business base and the key sectors of Retail, Tyre, Plantations, and Plastics are expected to further improve performance over the second half of the financial year.

The aggressive expansion of the retail sector is expected to continue and the Group’s insurance business which was established in January earlier this year is expanding its branch network and business base. A spokesman for the company stated that the outlook for the rest of the financial year is very positive.