RPC ups 1H turnover by 12% and pre-tax by 29%

The Richard Pieris Group has ended its first six months on a positive note reporting a Group Revenue of Rs. 23.5 b and a PBT of Rs. 2.17 b. The reported Revenue and PBT signifies a growth of 12% and 29% respectively over and above the corresponding period of the previous year.

“The reported profits represent business profits, and do not include any gains of a capital nature,” the company said in a statement. The Group continues to focus on its core business sectors whilst considering many opportunities for further expansions both locally and internationally, it added.

The Retail Sector of the Group comprises Arpico Supercentres, Superstores, Arpico Daily Supermarkets and a network of Arpico Showrooms scattered island wide.

The sector continued to focus on consumer promotions to drive footfall and expand basket value through the most anticipated ‘Top Tips’ and ‘Daily Deals’ price drop strategies, which offer attractive discounts on essentials, fresh produce, household durables and electronics.

The marketing strategies were further leveraged by securing strategic partnerships with banking and credit card partners offering greater value to customers. The sector continued to offer benefits beyond in-store discounts that complement the lifestyle of Privilege loyalty members by tying up with leading merchants in the health and dining sectors. The Arpico Supercenter Brand won the award for ‘Excellence in Branding & Marketing’ – Retail Sector at the CMO Asia Awards in Singapore during the period under review, becoming the first Sri Lankan modern trade chain to win this accolade amongst many other Asian competitors.

The Plastics and Distribution Sector comprises a range of products including mattress, water tank, PVC products, rigifoam, rubber products and water pumps. New production line commissioned during this financial year assisted water tanks operation to cater the increased demand.

 The Rigifoam operation also celebrated its 50 years existence in the market during the period under review. Continuous marketing campaigns and various promotional activities have assisted the sector to gather momentum in its sales volumes.

The Plantation Sector of the Group improved its performance during the first six months of the financial year 2016/17, mainly driven by the solid performance of palm oil. Production of rubber improved but the prices have declined during the second quarter of the financial year 2016/17.

Initiatives such as quality improvements and productivity enhancements were undertaken to improve the performance of the tea segment. There was an improvement in tea prices during the period under review however, adverse weather conditions affected production volumes.

The Retreading business of the sector was affected by the declining demand for retreading tyres in the market. The sector continued to focus on marketing campaigns and effective use of resources.

The Rubber Manufacturing Sector comprises a range of products including natural latex foam mattresses, pillows, rubber mats, jar sealing rings and small moulded products. The Latex foam business segment recorded high sales volumes during the period under review due to the aggressive sales and marketing activities. The sector continued to focus in product developments, increasing productivity and expanding markets to sustain its growth. Richard Pieris Natural Foams secured the Most Outstanding

Exporter of the Year at the National Chamber of Exporters of Sri Lanka award ceremony2016.

The Financial Services Sector of Richard Pieris Group consists of its own life insurance, stockbroking, fund management and a finance company. Arpico Insurance PLC opened its latest branch in Jaffna during the period under review.

Richard Pieris & Co. PLC is a diversified business conglomerate with a rich history of 84 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, educational services and retail. The Retail Sector led by its flagship brand ‘Arpico Supercenters’ operates one of the largest modern trade chains in the country.

A melting pot of talent, Richard Pieris & Company PLC is one of the largest employment providers in the private sector in Sri Lanka.