Singer optimistic about the future despite dip in profits

Monday, 18 November 2013 00:01 - - {{hitsCtrl.values.hits}}

Anticipating strong medium term growth prospects, Singer Sri Lanka, the country’s leading consumer durables retailer continued to make infrastructure improvements during the 2013 financial year. For example, the company carried out renovations and expansions of its existing retail network and added new shops. Singer Sri Lanka already has the country’s most extensive retail network, with nearly 400 outlets island-wide. Difficult business conditions

However, difficult business conditions continued to impact the company’s bottom line. While collecting receivables posed certain difficulties, the Singer Group still performed better than the rest of the industry in this operational area, due to its outstanding culture, use of a state-of-the-art ERP system and call centre service, as well as SMS reminders, together with more traditional collection drives. Although the Singer Group’s gross sales revenue increased during the first three quarters of the financial year, the application of the Value Added Tax regime to the retail sector resulted in net revenue decreasing by 1%. However, Singer Sri Lanka’s communications segment continued to impress, with revenue increasing by a staggering 130%. While revenues dipped marginally, expenses increased due to inflation and high electricity tariffs and finance costs increased by 55%, due mainly to the higher level of interest rates. The combination of these factors led to a fall in profits of 54% and 64% for the Group and Company, respectively. Business opportunities The company’s retail strength, however, allows it to transform economic challenges into business opportunities. For example, retail space has become more affordable, while new brands and agencies have become available to Singer, setting the stage for continued expansion. In the third quarter of the current financial year, it launched the cutting-edge Huawei Ascend P6 smartphone to widespread demand. The company also continues to strengthen its relationships with customers, introducing an integrated customer loyalty program that further enhances Singer’s value proposition. Together with the country’s most extensive retail network, the industry’s most widespread service network, and the largest offering of world-class brands, Singer Sri Lanka continues to set the standard for ‘trusted excellence’ in Sri Lankan retail.