Singer Sri Lanka continues excellent growth

Wednesday, 16 November 2016 01:29 - - {{hitsCtrl.values.hits}}

Singer (Sri Lanka) Plc’s Group financial results in the third quarter of 2016 displayed its continued strong growth momentum connected to revenue and net income. At the end of the third quarter, the Group reported a 22% increase in revenue amounting to Rs. 33.1 billion. This reflected a commendable 59% growth over the last two years.

The Group’s Net Profit at the end of the third quarter increased 112% to Rs. 1,763 million over the previous year. This included a one-time gain and consolidation of new acquisitions.

Group Revenue for the third quarter increased 21% to Rs. 11 billion while Group Net Profit recorded an increase of 99% over the previous year to Rs. 340 million, inclusive of consolidation of new acquisitions.

During the first nine months, significant initiatives undertaken by the Group included the launch of Singer’s own Credit Card with Visa, the launch of the new Singer Vista Smart TV range, wholesale marketing of Sony products and the opening of Digital Media Corners in retail shops. The expansion of capacity at the Group’s refrigerator factory, the introduction of a new furniture brand for dealers, a thrust into dealer markets for computers and significant growth in E-commerce sales, the furniture and institutional market for digital media and air conditioners were some of the other initiatives. The Group also continued its successful campaigns for refrigerators, televisions and air conditioners. Consumer demand continued to grow despite the increase in interest rates, exchange rates, VAT and inflation. Traditional products such as refrigerators, televisions and sewing machines continued to do well. Growth in major thrust product categories were even stronger: Smartphones grew by 63%, air conditioners by 59%, air coolers by 30%, water pumps by 29%, furniture by 24%, computers by 15% and washing machines by 18%.

During the year, Singer (Sri Lanka) acquired majority stakes in Singer Industries (Ceylon) Plc and Regnis (Lanka) Plc from its parent company Singer (Sri Lanka) B.V. resulting in a one-time gain on bargain purchase amounting to Rs. 507.7 million. Post- Acquisition Net Income of these two companies is consolidated in the Group results of Singer (Sri Lanka) Plc. There was no impact on Group Revenue due to this acquisition.

Commenting on the Q3 2016 results, Group CEO Asoka Pieris said: “We are happy with the performance in the first nine months and expect the trend to continue for the rest of the year. Our growth momentum reflects the Group’s capitalisation of new business opportunities, especially from acquisitions and other initiatives.”

Chairman Dr. Saman Kelegama stated: “The strength of the Singer brand in Sri Lanka and the company’s focus on product quality and customer service have contributed to achieving outstanding results.”

Singer (Sri Lanka) is 79.7% owned by Retail Holding (Sri Lanka) B.V (A Dutch company) and the shares of the company are publicly traded on the Colombo Stock Exchange. Additional financial and other types of information about the company may be found in the corporate/investor section of the company’s website www.singersl.com. For further information, please contact company secretary A.C.M. Irzan on 94112316244.