Singer records Rs. 55 bn revenue for FY 2019/20, 11% hike in PAT

The Singer Group reported a full financial year (FY) 2019/20 consolidated revenue of Rs. 55 billion with an 11 per cent rise in profit after tax (PAT) despite the ongoing challenging business environment. 
Additionally, the group’s consolidated gross profit for the year increased by 2 per cent to Rs. 16.4 billion and at the company level, gross profit increased by 6 per cent to Rs. 13 billion, the company said in a media release. 
Consolidated profit before tax (PBT) for the year ending March 31, 2020 was recorded at Rs. 611 million, down by 9 per cent from the previous year, the group said in a media release on Friday.
Consolidated PAT of Rs. 427 million represented a growth of 11 per cent compared to Rs. 386 million during the previous year. 
During the financial year, Singer Group revenues were adversely impacted mainly by the April 19 Easter Sunday Attack and it’s prolonged impact in the economy, mobile phones sales drop due to US/China trade issues, and the recent island-wide shutdown due to the COVID-19 pandemic spread.  
Despite a decline in revenues, consolidated operating profit recorded a growth of 3 per cent to Rs. 4.1 billion and at company level, operating profit had a growth of 17 per cent to Rs. 2.8 billion reflecting wider gross profit margins and improved cost efficiencies.  
“The improvements in gross profits reflect the group’s timely decisions in product margin management and well balanced product marketing mix, continued growth in hire-purchase interest income and ongoing emphasis on streamlining processes. Accordingly, the consolidated gross profit margin was raised to 30 per cent on a cumulative basis from 27.5 per cent in the previous year,” the statement said.
Commenting on the FY performance, Mahesh Wijewardene, Group Chief Executive Officer said, “Despite a difficult business environment and continued challenging external environment as a result of the COVID-19 pandemic and ensuing economic ramifications, we continue to drive forward persistently. While the anticipated strong earnings and an overall solid performance did not materialize at the end of the financial year, we will continue to strengthen our businesses and further increase our competitiveness to deliver sustainable profitable growth in the future.”
Following the spread of the global pandemic in Sri Lanka and resultant lockdown and curfew, the group/company retail and manufacturing operations were adversely affected from March 15 to May 10. The organisation experienced disruption in retail sales, collections of trade debtors, hire purchase collections and lease installment collections during this period and this is likely to continue in Q1 and Q2 as a result of anticipated negative sentiments from the macro and micro economic environment. The group expects retail operation to be normalized in Q2 (FY 20/21) onwards, the statement said.