Richard Pieris records revenue of Rs. 34.7 b in 2013/14

Wednesday, 4 June 2014 00:01 - - {{hitsCtrl.values.hits}}

The Richard Pieris Group ended its performance in financial year 2013/14 reporting a Group Revenue of Rs. 34.7b with a Profit before Tax of Rs. 2.3 b. The reported profit for the year does not include any gains of a capital nature. Retail sector: After a very successful seasonal campaign the sector had a relatively quiet quarter but its marketing activities gained momentum towards the latter half of the quarter with the commencement of the Avurudu campaign. During the quarter ended on 31 March 2014 the sector launched Sri Lanka’s first ever retail co-branded credit card in partnership with Standard Chartered Bank. This Privilege Visa credit card provides numerous rewards and benefits to its users.

Plastics and Distribution sector: The sector faced a range of challenges during the quarter ended 31 March 2014, which included unfavourable market conditions, low purchasing power of consumer due to adverse economic conditions. The sector’s products do not constitute a purchase priority in daily life and this proved to be a drawback in the phase of the sluggish economy and the reduced spending power of consumers. However, each of the sector’s SBUs continued to search for market opportunities, while focusing on reducing overheads to enhance their competitiveness, profitability, and focused on minimum work-in-capital investments to optimise costs Plantation sector: The impact of the wage increase in the plantation sector employees had its impact on the reported results of the period under review. Rubber prices yet again were down when compared to last year and had an adverse impact on the reported results. There was an increase in the coconut production due to favourable weather conditions with favourable prices. The total production of oil palm also increased when compared to the corresponding period of the previous year and the oil palm prices continued to increase. However, there was a decline in the production of tea when compared to last year though the prices improved. Tyre sector: In a challenging financial year the tyre sector performed exceptionally well and benefited from the low raw material prices. It further expanded its product portfolio with the introduction of a new mini truck tyre ‘Hida,’ which was introduced to the market at a very competitive price. Rubber Manufacturing sector: The sector ended the financial year on a very positive note where it reaped the benefits of many a restructuring activities which took place over the last 24 months. The reported results were marginally higher than the previous year which is commendable in a financial year where most of the sectors faced many challenges. The sector continued to focus on many marketing activities and participated at several international fairs and exhibitions. With the level of current success the sector has many expansion plans for the future. The Group continues to focus on its core sectors and will utilize the local and global opportunities to expand its business. Planned expansions in its Retail operations will continue and a large format retail outlet was opened in the city of Panadura in May 2014. A spokesman for the Company stated that the Group is already considering many expansion opportunities and new activities taking into account the strengths of the Group in the different sectors for its long term growth.