Singer Group posts Rs. 27.1 b 1H revenues

The Singer Group reported consolidated revenues of Rs. 27.1 billion for the first half which ended 30 September 2019 and Company Singer (Sri Lanka) PLC which is the main marketing arm of the Group recorded Rs. 22 billion for same period which is 3% above the prior year. 

Company revenue in the second quarter grew over the prior year by 7%. This is a gradual recovery despite challenging market conditions especially after the Easter Sunday attacks and sluggish market conditions. 

Despite adverse market conditions, the Group had sustained Gross Profit margin, which grew over the prior year by 1%, and in absolute terms, gross profit margin recorded at Rs. 8 billion in first half, which is a 1% growth over the prior year. This is a significant improvement when compared with sluggish market conditions, strong competition in consumer durable market and exchange fluctuation and resulted due to management initiatives implemented in recent period of time.  

Selling and administrative expenses had marginal growth over the prior year by 3% due to the general inflation, expansion and infrastructure development for future prospective. Group continued to spend for expansion and infrastructure building especially for new initiatives expecting market recovery.   However, Impairment loss on trade and other receivables grew over prior year by Rs. 150 million especially due to current market scenarios plus aggressive provisioning policies adopted in line with SLFR 9. 

Second quarter operating profit is Rs. 807 million which is below PY by 6% and Operating Profit in the first half of the year is Rs. 1.8 billion which is below PY by 13%.

Group net Finance cost in 2Q had declined over PY by 8%, which is significant improvement due to better management of working capital cycle. Net Finance cost for first six month increased over PY by 17%.  

The Group recorded a profit after tax of Rs.25 million in comparison to Rs. 335 million realised during the previous year. 

April being one of the peak selling months took a serious hit as a result of the Easter Sunday attacks and surrounding events. The company’s profitability was adversely affected due to the uncertainty which engulfed both the economy and the consumer. However, an upturn in market sentiment has been seen in recent months with a gradual improvement in sales volumes and recovery from the lows of April on the horizon.

The company echoes a positive outlook with gradual margin improvements and price adjustments made in major product categories through lower discounts and managing costs in several expenses categories. 

Singer (Sri Lanka) Group is the largest retailer, financier and manufacturer of consumer durables in Sri Lanka.  The company has 437 retail stores as well as a fast growing e-commerce platform. The company also serves over 2,800 dealers/sub retailers. It is also renowned for its after-sales service network with 14 Regional Service Centres and over 300 service agents. Apart from its household brands, the company is exclusive distributor for many well-known international consumer durable brands.

Singer commenced business in Sri Lanka in 1877 and shares of the company are publicly traded on the Colombo Stock Exchange. 

The Board of Directors of Singer (Sri Lanka) PLC comprises Mohan Pandithage – Chairman, Dhammika Perera – Co-Chairman, Mahesh Wijewardene – Group Chief Executive Officer, Deepal  Sooriyaarachchi, Dumith Fernando, M. H. Jamaldeen, Sarath Ganegoda, Dilip de S Wijeyeratne and Otara Gunewardene.