Richard Pieris records turnover growth of 8%

Friday, 7 June 2013 05:47 - - {{hitsCtrl.values.hits}}

The Richard Pieris Group ended its performance in financial year 2012/13 reporting a Group revenue of Rs. 34.7 b with a steady profit before tax of Rs. 3 b. The reported profit for the year does not include any gains of a capital nature.

The Retail sector faced a challenging period of three months from January to March 2013 where consumer confidence was low and the adverse financial and operational effects of the implementation of VAT on retail businesses was evidenced. The company continued focusing heavily on managing overheads and inventory levels during the period under review as a result of above.

The period under review and the financial year 2012/13 was successful for the Plastics and Distribution sector of the Group. The sector reported the highest-ever sofa sales in the month of March 2013. The sector managed to maintain its sales on PVC fittings at a healthy level at a time there was a drop in the overall market due to adverse weather conditions.

The Plantation sector continued to enjoy healthy tea prices. The declining trend in rubber prices continued, which affected the turnover of the sector. There was a drop in the production of both tea and rubber crops when compared with the corresponding period of the previous year which is largely due to the harsh weather conditions which prevailed during the period under review.

There was an increase in the total production of tea and oil palm when compared with the fourth quarter of the previous year.

During the period under review the Tyre sector performed well and ended the financial year with outstanding results. Commercial operations proved to be successful on the new tyres which were introduced to the market during the previous quarters. With the expansion of product portfolio and brands the sector restructured its sales team during the period under review to enable operational efficiencies.

The Rubber Manufacturing sector ended the financial year on a very positive note where it reaped the benefits of many restructuring activities which took place over the last 24 months. The latex foam business which was turned around last year recorded its highest-ever revenue and profits during 2012/13 financial year. The shoe soling business had a challenging year and is expected to have better prospects during 2013/14 financial year.

The Group continues to capitalise on its solid business base and the key sectors of Retail, Tyre, Plantations and Plastics. The expansion of the Retail sector is expected to continue in the coming year and plans are underway to aggressively drive the furniture business of the Group.

The entry into financial services was further strengthened with the commencement of commercial operations of Richard Pieris Arpico Finance Company during April 2013. The Group continues to add value in all its activities as it steps into its 82nd year of business operations in 2013/14.