Singer Group posts Rs. 27.1 bn revenues in first half
View(s):The Singer Group has reported consolidated revenues of Rs.27.1 billion for the first half which ended on September 30, 2019.
Under this, Singer (Sri Lanka) PLC which is the main marketing arm of the group, has recorded Rs. 22 billion revenue for the same period which is 3 per cent higher than the same period, in the previous financial year.
Company revenue in the second quarter grew by 7 per cent, a gradual recovery despite challenging market conditions specially after the Easter Sunday attack and sluggish market conditions, according to a Singer media release.
Despite adverse market conditions, the group had sustained Gross Profit (GP) margin, growing by 1 per cent over the earlier period and in absolute terms the GP margin was Rs. 8 billion in first half, a 1 per cent growth over the earlier year. “This is a significant improvement when compared with sluggish market conditions, strong competition in the consumer durable market and exchange fluctuation and this was also as a result of management initiatives implemented recently,” the company said.
Selling and Administrative expenses had marginal growth over the earlier year by 3 per cent due to general inflation, expansion and infrastructure development for future prospective. The group continued to spend for expansion and infrastructure building specially for new initiatives expecting a market recovery. However impairment loss on trade and other receivables grew by Rs.150 million specially due to the current market scenarios plus aggressive provisioning policies adopted in line with SLFR 9.
The second quarter operating profit was Rs. 807 million which was below the earlier year by 6 per cent while operating profit in the first half of the year was Rs. 1.8 billion, below by 13 per cent.
As a result of the turbulence, group profit after tax was Rs.25 million sharply down in comparison to Rs. 335 million realised during the previous year, the company said. “April, being one of the peak selling months, took a serious hit as a result of the Easter Sunday attacks and surrounding events. The company’s profitability was adversely affected due to the uncertainty which engulfed both the economy and the consumer. However, an upturn in market sentiment has been seen in recent months with a gradual improvement in sales volumes and recovery from the lows of April on the horizon,” it said.