Richard Pieris reports Rs.21 b revenue, Rs. 1.7 b profit in 1H

The Richard Pieris Group has ended its first half year reporting a Group Revenue of Rs.21 billion and a PBT of Rs.1.7 billion. 

The six months ended 30 September 2015 resulted in a moderate performance in all sectors of the group except for the plantations sector, where the entire industry is facing a crisis with declining volumes and prices. The reported profits represent business profits and do not include any gains of a capital nature.

 

Sectoral performance

Retail Sector

The Retail Sector of the group comprises Arpico super centres, super stores and the network of Arpico outlets scattered islandwide. 

During the second quarter of the financial year the sector continued to focus on marketing activities through its top tips campaign. The sector also began commercial operations in one Arpico Daily outlet in the town of Mulleriyawa during the quarter under review.

Plastics and Distribution Sector

The Plastics and Distribution Sector reported an Operating Profit of Rs.644 million during the six months ended 30 September 2015. 

The steady demand for water tanks, which prevailed at the beginning of the period under review, lost its momentum towards the end of the quarter due to adverse weather conditions. The rigifoam sales were also adversely affected due to poor weather conditions and rough seas.

Plantation Sector

The Plantation Sector of the group experienced a very challenging first six months, facing many adverse factors.

The Richard Pieris Group possesses three of the largest plantation companies in the country with diverse crops which includes high grown, mid grown and low grown tea, rubber, oil palm, coconut, cinnamon, cardamom, rambutan and other crops contributing to more than 15% of Group Revenue. 

Tyre Sector 

The Tyre Sector reported an Operating Profit of Rs.316 million during the six months ended 30 September 2015. 

The Richard Pieris Tyre Company, which introduced a new brand, ‘Arpidag Hybrid’ during the first quarter, received a favourable response from the marketplace.

Rubber Manufacturing Sector

The Rubber Manufacturing Sector reported an Operating Profit of Rs.358 million during the six months ended 30 September 2015. 

Financial Services Sector

The Financial Services Sector of the Richard Pieris Group consists of its own life insurance, stock broking, fund management and finance company. The sector reported an Operating Profit of Rs.99 million during the six months ended 30 September 2015. 

New branches were opened in the cities of Matara and Ambalantota by Richard Pieris Finance Company and Arpico Insurance Plc respectively.