Singer Sri Lanka see consumer durables sales soar in 2015
ECONOMYNEXT – Singer Sri Lanka Plc, said consumer durables sales rose 34 percent to 9.1 billion rupees in the September 2015 quarter from a year earlier, interim account showed.
"The growth in Revenue and profits is due both to the initiatives and expansion done by the Group and due to the improvement in the business environment," group chief executive Asoka Pieris told shareholders.
"The Company continues to take initiatives and expand by establishing new shops, dealers and channels of distribution."
Group net profits however fell 30 percent to 150 million rupees.
Revenues grew 34 percent to 9.1 billion rupees, but cost of sales rose at a faster 49 percent to 6.2 billion rupees, and gross profits fell 9 percent to 2.6 billion rupees.
Pieris told shareholders the fall in profits was partly due to a one off reversal which boosted profits in the September quarter in 2014. In the nine months to September profits rose 65 percent to 767 million rupees.
Pieris said a 5 percent devaluation of the rupee has hit costs and there has been a small increase in interest rates.
"We are optimistic that this will not seriously affect the business environment," he said.
He said profits were still below 2012. In 2012 Sri Lanka tightened monetary policy and devalued the currency after authorities fired a consumption boom by printing money to subsidize energy.
Analysts say at the moment a consumption bubble has been fired by a steep increase in salaries for state workers which is also being financed with monetized debt and liquidity releases which is generating balance of payments pressure. (Colombo/Oct29/2015)