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Friday, May 6, 2011

Sri Lanka Singer unit profits up on strong consumer electronics sales

May 06, 2011 (LBO) - Singer (Sri Lanka) said March 2011 quarter net profit rose 48.5 percent from a year ago as the end of a war and an international cricket tournament boosted consumer electronics sales.

The company, a unit of Retail Holdings of the Netherlands, made a net profit of 249.6 million rupees in the March quarter with sales up 38 percent to five billion rupees.

Pre-tax profits on consumer electronics sales more than doubled to 171 million rupees, results filed with the stock exchange showed.

Singer (Sri Lanka) paid royalty expenses of 54 million rupees to its intermediate parent firm, Singer Asia, during the year, up from 39 million the year before.

The firm is 86 percent-owned by Singer Asia, which in turn is 56.8 percent-owned by Retail Holdings N.V of the Netherlands.

"The economy and the markets were good as the country continued to enjoy the peace dividend and have sound economic policies," Singer (Sri Lanka) group chief executive Asoka Pieris said in a statement.

Sri Lanka's 30-year ethnic war ended in May 2009, resulting in accelerating economic growth.

"The only setback was the floods that ravaged the country in January and February. The growth was low in the districts affected by the floods, but this deficit was caught up by growth in other districts."

The company’s revenue growth in the Colombo district was 71 percent owing to the reduction of the grey market and the company’s focus on new products such as LCD/LED televisions, laptops, cameras, double door refrigerators and fully-auto washers.

"The Cricket World Cup boosted the demand for televisions," Pieris said.

"We capitalized on this demand by introducing several new models, adequate supplies and attractive sales programmes. Our television unit sales increased by 93 percent over prior year first quarter, all of the increase coming from LCD, LED televisions."

Sales of all major products grew over the previous year with significant increases seen on computers which grew 85 percent, air-conditioners (76 percent), DVDs (57 percent), audios (188 percent), and small kitchen appliances which grew 56 percent.

source - www.lbo.lk