The Richard Pieris Group recorded a turnover of Rs 7.2 billion during the first quarter of 2011/12 which signifies a healthy growth of 15 percent when compared to the previous year.
The Group's Retail Sector continued to grow with the opening of new super centres islandwide which enabled a turnover growth of 27 percent and Plastics Sector recorded a turnover growth of 29 percent.
The Group is poised to achieve its targets during the year with plans underway for an aggressive expansion of its large format retail outlets and diversification plans into the financial services sector.
During the first quarter the Group reported an operating profit of Rs 148 million. The results were affected due to a charge of Rs 627 million consequent to a wage increase in the Plantation Sector in June 2011.
This comprised a gratuity provision of Rs 469 million and wage arrears of Rs 158 million which resulted the Group reporting a profit before tax of Rs 3.4 million. If not for this impact which had to be absorbed in the current quarter, the Group would have recorded an operating profit amounting to Rs 775 million and a profit before tax of Rs 630 million for the three months ended on June 30, 2011.
During the last 12 months group debt levels reduced from Rs 4.8 billion as at June 30, 2010 to Rs 4.2 billion by end June 2011.
This reduction in debt levels and the increase in the overall profitability over the last two years have significantly reduced the level of gearing of the Group.
The resulting finance costs have reduced to Rs 170 million compared to Rs 181 million incurred in the three months ended on June 30, 2010.
The entire financial impact amounting to Rs 627 million was absorbed during the three months ended June 30, 2011 which resulted in the sector reporting an operating loss of Rs 230 million.
This contained an increase in the Gratuity provision which amounted to Rs 469 million and salary arrears of Rs 158m for the period April 2011 to June 2011.
The Retail Sector continued its steady performance with a turnover of Rs 3.1 billion and an operating profit of Rs 245 million during the three months ended June 30, 2011. The turnover of this segment grew by 27 percent when compared to the previous year with an increase of 40 percent in the operating profit which was Rs 175 million in the first quarter of 2010/2011.
The Tyre Sector recorded a turnover of Rs 631 million, a growth of 11 percent and an operating profit of Rs 43 million during the three months ended June 30, 2011 which reflected a marginal drop when compared to an operating profit of Rs 45 million reported in 2010.
The Rubber Sector reported a turnover of Rs 481 million and a marginal operating profit of Rs 9 million during the three months ended June 30, 2011.
The Plastics Sector recorded a turnover of Rs 1 billion and an operating profit of Rs 117 million for the three months ended June 30, 2011.
The turnover was 29 percent higher than the corresponding period of the previous year and the operating profit increased by 54 percent compared to last year.
source - www.dailynews.lk
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