Sri Lankan diversified conglomerate Richard Pieris, brand owner of the Arpico "large format" retail store chain, has signalled plans for "aggressive" expansion, specifically doubling its retail space and turnover in the next 24 months. Further, it also stated that its retail turnover grew by 29% year-on-year, to Rs. 6.4 billion, for the six months to end-September 2011.
Also highlighted, operating profit for the 6-month period grew by 138% year-on-year, to Rs. 821 million, which was mainly due to a Capital Gain of Rs. 717 million due to an exit of its Asian Alliance Insurance investment, done in favour of "making steady progress in its venture in to the insurance industry with its own identity."
The group also reported that non plantation sector businesses, comprising retail, tyre, rubber and plastics, had achieved an aggregate growth of 150% year-on-year, while "key sectors of retail, tyre and plastics are expected to further improve performance."
Turnover for its plastics business went up by 30% year-on-year, to Rs. 2.3 billion, while its operating profit increased by 47% year-on-year, to Rs. 269 million, both for the six months to end-September 2011. Numbers which were said to result from a "steady" growth in mattress sales, a newly introduced design and re-branding of its plastic water tanks and the launch of “Nano-CFL Bulbs.”
At the same time, tyre turnover, for the six months to end-September 2011, was up 12% year-on-year, to Rs. 1.4 billion, with operating profit at Rs. 124 million. The latter having dropped as per the comparable period in 2010. This was said to be due to high natural rubber prices affecting margins over the six months to end-Septmeber 2011, and despite volumes and market share of the its tyre business increasing overall.
Meanwhile, group turnover was Rs.7.7 billion and group operating profit was Rs. 1.7 billion for the most recent quarter, the three months to end-September 2011, while six month, to end-September 2011, group turnover was Rs. 14.9 billion with group operating profit of Rs. 1.7 billion and group profit before tax at Rs. 1.4 billion.
The plantations business, comprising Kegalle Plantations PLC, Namunukula Plantations PLC and Maskeliya Plantations PLC, on the other hand, was said to have suffered a setback in 2011, with operating profit of Rs. 142 million achieved mainly due to the prfitability of Kegalle Plantations PLC.
Additionally, Namunukula Plantations PLC was also profitable. Both due to high rubber and palm oil prices. However, tea prices were not increased although wages increased "significantly" with the overal result being that Maskeliya Plantations PLC "continued to incur losses and the reported loss after tax for the 1st half year of 2011/12 amounted to Rs. 522 million." (JH) |
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