Singer in rousing performance

Hits Rs. 10bn revenue mark in H1, as electronic  appliance sales picks up

The Singer Group recorded Rs. 10.27 billion in revenue for the first half of the 2011 financial year, up 38 percent from a year. The boom in the group’s revenue boosted its bottom line which, combined with higher margins and lower interest costs, resulted in a growth of pre-tax profits by 62 percent to Rs. 957.7 million.

Profit after taxes was up by 69 percent over the same period in the previous year to Rs. 562 million.

In the Chief Executive’s Review, Singer Sri Lanka Group CEO, Asoka Pieris, noted the strength of the Sri Lankan economy, which helped boost sales of its products.

Continuing to consolidate its position as the country’s leader in consumer durable retailing, Singer Sri Lanka witnessed incredible growth in a range of key product categories. For example, the Group’s championing of more energy-efficient televisions, following the reduction of duties and taxes, drove a 69 percent increase in unit sales of televisions over the same period of the previous year, with all increases coming from sales of LCD and LED televisions. Sales of refrigerators also increased by 35 percent while sales of washing machines improved by 33 percent.

Other product lines which had impressive growth were audios (183 percent), computers (69 percent), air conditioners (151 percent), DVD (39 percent), small kitchen appliances (53 percent) and fans (79 percent).

In spite of the buoyant overall economy, the Group did face a major setback when January and February torrential rains caused severe flooding in certain parts of the country, destroying harvests and displacing many, the company noted releasing its financials to the Colombo Stock Exchange.

The districts that bore the brunt of the damage were areas in which Singer has a very strong presence.

Displaying true Sri Lankan tenacity and togetherness, the Group worked diligently to help affected countrymen while ensuring that it overcame this difficult time by striving for accelerated growth in other districts. For example, the Group’s revenue in the Colombo district increased by 64 percent, due to its focus on innovative, premium quality products such as LCD and LED televisions, laptops, digital cameras, double-door refrigerators, and fully automatic washers, as well as its adherence to its multi-brand marketing strategy

source - www.island.lk