Sri Lanka Softlogic Sept net up 13-pct, retail sales double

ECONOMYNEXT – Softlogic Holdings said group net profit for the September 2015 quarter rose 13 percent to 116 million rupees from a year ago with its retail business sales almost doubling following the acquisition of Odel.

Group sales went up 52 percent to 13.2 billion rupees in the September 2015 quarter from the year before, a stock exchange filing said.

Quarterly earnings per share rose to 15 cents from 13 cents the previous year.

In the six months to 30 September 2015, EPS rose to 26 cents from 19 cents a year ago.

Softlogic Holdings chairman Ashok Pathirage said the group’s retail sector “led the consolidated revenue, post-acquisition of Odel, with a contribution of 33.3 percent for 1HFY16 followed by ICT, especially its mobile phone items, with 28.7 percent.”

“Operating profit achieved a growth of 90 percent to 1.5 billion rupees during the quarter, witnessing a strong margin growth to 11.4 percent from 9.1 percent in the corresponding quarter,” Pathirage said in a statement.

Retail business sales almost doubled to 4.4 billion rupees following Softlogic’s acquisition of retailer Odel PLC in September 2014, he said.

“Increasing footfalls at existing stores and incremental revenues from new stores/ brands demonstrates strong potential for this segment.”

Retail operating profit shot up 137 percent to 428 million rupees in the September 2015 quarter from a year ago, Pathirage said.

The group’s Healthcare and Leisure sectors were adversely affected by the rupee depreciation due to the foreign currency denominated debt in the books.

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But he said the leisure sector’s foreign currency receipts constitute a natural hedge.

Pathirage said finance income fell 55 percent to 548 million rupees during the first half, reflecting the impact of falling market interest rates and volatile stock market performance on the investment portfolio of Asian Alliance Insurance.

The “significant improvement” in the ICT business was driven by Samsung mobile handsets, he said.

“The success of the mobile segment will be further boosted with the launch of ‘HTC’ handset range in September 2015.”  (Colombo/November 13 2015)
 

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