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Tuesday, February 1, 2011

ODEL posts strong 9-month growth on booming sales

Consistent growth in sales across the chain and the expected seasonal spike in December 2010 have combined to generate robust nine-month fiscal results for Odel, Sri Lanka’s public quoted fashion retailer.

In results released to the Colombo Stock Exchange this week, the group said it had posted pre-tax profit of Rs 287 million for the nine months ending 31st December 2010, reflecting a growth of 61 percent over the corresponding period of last year.

Profit after tax for the period topped Rs 176 million, up 43 percent YoY, while turnover was up 42 percent to Rs 2.49 billion, the filing said.

The nine months reviewed encompasses two quarters as a public listed company, consequent to OdeL’s milestone initial public offer of July 2010.

Pre and post tax profits for the three months ending 31st December 2010, traditionally one of the strongest quarters on account of the festive season, reflected increases of 56 percent and 35 percent respectively over the third quarter of 2009-10.

The group’s basic earnings per share for the full nine months grew by 43 percent to Rs 1.29 from 90 cents for the first three quarters of the previous year.

Commenting on these figures, Odel founder and CEO Otara Gunewardene said, "We are confident of seeing this positive trend continue with the increase in tourism and planned development of the country."

Two new Odel stores expected to come on line before March 31, 2011 will take the store network in Sri Lanka to 15.

Odel has declared an interim dividend of 25 cents per share in respect of the year 2010/2011 based on the current performance of the group. The Odel share was offered at Rs 15 at the company’s IPO of 16.7 million ordinary shares, and commenced trading on the Colombo Stock Exchange on 4th August. The share was trading at Rs 46 as at January 20, 2011, up 206 percent from its issue price.

The Odel chain now comprises of stores at Alexandra Place, Maharagama, Kohuwala, Mount Lavinia, Moratuwa, Panadura, Nugegoda (Warehouse), Dickman’s Road, Ja-ela, Majestic City, Crescat (Backstage), Battaramulla and at the Bandaranaike International Airport.

source - www.island.lk