Sri Lanka’s Softlogic December net down 33-pct, sales sluggish, costs up
Feb 17, 2017 15:07 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT – Sri Lanka’s Softlogic Holdings group said December 2016 quarter net profit fell 33 percent to Rs151 million from a year ago, with finance costs almost doubling as interest rates rose along with higher marketing expenses for new operations.
Finance costs almost doubled during the quarter as interest rates rose, while there was an increase in operating costs owing to the opening of te new Mövenpick City Hotel and marketing costs of new ventures.
The accounts showed that Softlogic group’s Information & Communication Technology business profit doubled during the December quarter and retail business profits improved. But the group’s healthcare services and financial services earnings were sharply lower, the automobile business loss was slightly lower, and leisure sector losses narrowed.
December quarter earnings per share were 20 cents. The share last traded at Rs12.40.
In the nine months to 31 December 2016, EPS was 45 cents with net profit down 18 percent to Rs347 million, while sales went up 10 percent to Rs45 billion.
Softlogic Chairman Ashok Pathirage said the group’s outlook has “tremendous potential for increasing its overall value substantially through its strategic investments in growing sectors of the economy.”
He said the opening of the Mövenpick City Hotel, a substantial investment of the group, received rave reviews from the industry and was the first new five-star luxury hotel to operate after almost three decades in Colombo.
“ODEL Mall will commence in the near future, so its unrivalled leadership in retailing would take the country to its next level of consumerism and lifestyle improvements,” Pathirage said.
He said the group faced economic challenges like rising interest and tax rates, and falling consumer confidence, which affected retail and services.
Pathirage said group December quarter sales were stagnant “primarily due to the group’s substantial downsizing of ‘Nokia’ operations.”
(COLOMBO, Feb 17, 2017)