Odel shines in 3Q; Ashok announces new plans

Friday, 13 February 2015 00:00 - - {{hitsCtrl.values.hits}}

Odel PLC has reported a quarterly (3QFY15) turnover of Rs. 1.4 b from Rs. 1.38 b last year, taking the cumulative turnover to Rs. 3.7 b for the nine months as against Rs. 3.5 b in the comparative period. Chairman Ashok Pathirage said a notable improvement in gross profit margins took place during the quarter to 40.2% from 36.5% in 3QFY14.

A decline in operational cost margins was also noted during 3QFY15 to 31.5% from 34.2% in the comparative quarter which consequently improved operating profit margins to 10.1% from 6.3%. cumulative operating profit (excluding other operating income) improved by 30.8% to Rs. 158.7 m whilst the same for the quarter reached Rs. 122.5 m from Rs. 31.5 m in the comparative quarter. PAT for the nine-month period reached Rs. 144 m (Rs. 183.7 m in 1-3QFY15). However the quarter achieved a PAT growth of 130.7% to Rs. 106.2 m from Rs. 46.0 m in the comparative period. “The most pressing objective right now is to extract the maximum pathway to synergise Softlogic Retail’s operations with Odel to boost efficiencies and bottom line performance,” Pathirage said. “We are in the phase of reducing the overheads by synergising and consolidating our retail base by eliminating any cost-duplication or excess resources. Accomplishing this is seen as a key driver to deliver better EBITDA. The increase in activity levels and cost-sharing approach post consolidation has absorbed and mitigated fixed costs,” the Chairman added. He said Odel has always been a favourite shopping centre for local as well as foreign customers. Odel attracts customers from both middle and high income categories selling a good mix of exclusive as well affordable quality range of products. Odel houses its own international apparel section. Mothercare and Dockers in addition to existing brands such as Nike and Levis were also placed at Odel in December 2014. The company is keen to make available Mango, Charles & Keith and Giordano at Odel in the near future. “We would also house many other leading local brands such as Avirate, Yoland Collections and Linen & Life. A detailed strategic redesigning of Odel’s interior is in progress. The new look will also enhance the recent premier brand additions at Odel retail points,” Pathirage said. The Chairman said the company would also be constructing a premier shopping mall at Odel’s flagship store at Alexander Place, Colombo 7. The present Odel store would continue its operations with the mall being planned targeting most of the underutilised land base there. “Top German designers and architects are developing the blue print of this mall. This mall will feature an extensive retail space to house some of the best known brands both locally and internationally to cater to local demands and international tourists,” Pathirage added.