Richard Pieris records Q1 turnover of Rs.8.2 billion
View(s):The Richard Pieris Group recorded a turnover of Rs. 8.2 billion during the quarter ended 30th June 2013 with a pre-tax profit of Rs. 330 million, the company said this week.
The retail sector had a very robust performance during the first quarter with many exciting marketing campaigns. Three new showrooms were opened in the towns of Nittambuwa, Wellawaya and Galewela.
The negative sentiments on consumer confidence continued to be evident throughout the quarter under review. The implementation of VAT with effect from the 1st January 2013 affected the performance of the sector in the quarter under review as well.
The plastics and distribution sector faced a range of challenges during the quarter ended 30th June which included unfavourable market conditions, a sharp slowdown in the construction industry due to bad weather, low purchasing power of consumers and adverse economic conditions. The sector introduced a second brand of mattresses to compete in the lower end of the market and to suit the present market conditions whilst carrying out aggressive dealer promotions, it said.
Plantations faced a setback in terms of profitability arising from the wage increase while the demand for rubber continued to stagnate in the world market due to the poor economic climate in Europe. Adverse weather conditions also affected the sector performance with a drop in Tea, Rubber, Coconut and Oil Palm crops when compared with the previous year. Various cost improvement initiatives were initiated to maintain the profitability of the sector, the company said.
“In the rubber manufacturing sector the latex foam business continued to thrive with a dynamic management team which enabled to record the highest production volume in the recent history.
The sector secured several new customers during the period under review and continuous improvement activities in the production floor have enabled to further reduced factory reject rates,” the statement said.
The group said it continues to focus on its core businesses under the present economic conditions but the expansion of the retail sector is expected to continue in the coming year.
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