Odel sustains 21% sales growth at 3Q

Odel has reported turnover of Rs. 3.47 billion for the nine months ending 31 December 2012, posting healthy top line growth of 21% over the corresponding period of the previous year.

According to financial statements filed with the Colombo Stock Exchange, Sri Lanka’s top fashion retailer has achieved profit before tax of Rs. 253.9 million at the end of the third quarter of the year, an improvement of eight%.

Net profit for the nine months was up five% to Rs. 185.8 million.

In July 2012 Parkson Retail Asia Limited purchased a 41.82% stake in the company for Rs. 1.424 billion and increased its holding to 47.46% at the conclusion of the subsequent mandatory offer to minority shareholders and  a 1 for 1 Rights Issue in December 2012 that raised Rs. 2.5 billion in capital.

Subsequent to this infusion of capital, Odel has reduced its interest bearing borrowings to Rs. 738 million as at 31 December 2012 from Rs. 1,277 million a year ago, and reported cash and bank balances of Rs. 2 billion at the end of the period under review. The company’s stated capital increased from Rs. 251.9 million at the end of 3Q 2011-12 to Rs. 2.795 billion at 31 December 2012.

Commenting on the company’s nine months results, CEO Otara Gunewardene noted: “While we are encouraged by the growth in sales across the store network, we remain cautious in forecasting the year end results for Odel, mainly due to the possible impacts of the VAT that was introduced from 1 January 2013. However, we are optimistic as we feel that we have laid the foundation for long term growth and Odel is now ready to enter its next phase of development.”