Wednesday, October 20, 2010

Sri Lanka Odel Sept net up 18-pct

Oct 20, 2010 (LBO) - Sri Lankan retailer Odel's net profit rose 18 percent to 63.6 million rupees in the September 2010 quarter from a year ago with sales strong but costs also rising sharply, a stock exchange filing said.
Sales rose 50 percent to 836 million rupees in the quarter, its first as a listed entity, while earnings per share were up 18 percent to 44 cents. 
Distribution and administration expenses were also up by about half as Odel expands its network of retail outlets.
"We continue to witness significant same store growth and the addition of new stores has also contributed to this increased revenue," Odel founder and chief executive Otara Gunewardene said.

"We are excited about the next quarter, which is seasonally our strongest, with Christmas sales usually contributing to a considerable percentage of annual sales."

Two new stores that are expected to come on line before March 31, 2011 will also contribute to earnings, she said.

Net profit in the first half was up 50 percent to 100.6 million rupees from a year ago.
Odel group made a net profit of 37 million rupees in the June 2010 quarter, up 187 percent from the previous year owing to better margins despite higher tax and operating costs.

The statement said Odel "is well-positioned" to benefit from peak season tourist arrivals during the winter period.

Tourist arrivals to Sri Lanka are already up by 44 percent during the first nine months of the year compared with the year before following the end of the island's 30-year ethnic war in May 2009.
"Domestic consumption too remains strong amid soft inflation and sustained low interest rates, with customers eager to ‘trade up’ amid a growing feel-good factor," the statement said.

In July this year, Odel's initial public offer of 16.7 million ordinary shares set a new record on the Colombo bourse for oversubscription.

The Odel share commenced trading on the Colombo Stock Exchange on August 04, 2010 and was trading at 32.50 rupees Wednesday, up 117 percent from its issue price of 15 rupees. 

 source -

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