ODEL sales up 15% to Rs. 3.8 b in FY12

ODEL has posted sales of Rs. 3.8 billion and profit before tax of Rs. 264 million for the 12 months ending 31 March 2012, a year of significant expansion-related capital expenditure for Sri Lanka’s upmarket fashion retail brand.

In income statements filed with the Colombo Stock Exchange, ODEL PLC and its subsidiaries reported Group turnover growth of 15% over FY 2010-11, resulting in a net profit of Rs 202 million, down by 3% over FY11.

On the basis of these results, the Board of Directors of ODEL has declared a final dividend of 25 cents per share for the year. Together with an interim dividend paid earlier in the year, this amounts to a distribution of 50 cents per share for FY12.

Contributions to turnover were enhanced by the consolidation of revenue from four new stores opened in the year under review, and sales generated by expansions of existing stores, ODEL founder and CEO Otara Gunewardene said.

“Our expanded reach and same-store growth helped the top line,” she said. “All of the new stores are performing to targets, and will contribute to bottom line growth as they mature.”

ODEL opened new stores in Kandy (May 2011), and Wattala (September 2011) and launched two new-concept ‘LuvSL’ stores in Colombo and Kandy in FY12. An exclusive Men’s store was also set up in Kandy in the review period.

These investments in expansion resulted in the Group incurring higher finance expenses, which grew 64% to Rs. 110 million as well as an increase in administration costs.  The impact of these increases was partly offset by the lower rate of taxation applicable for the year reviewed. Income tax for the 12 months reduced by 57% to Rs. 62.4 million.

The ODEL Group now comprises of 16 stores at Alexandra Place, Kohuwala, Maharagama, Mount Lavinia, Moratuwa, Panadura, Nugegoda (Warehouse), Dickman’s Road, Ja-ela, Majestic City, Crescat (Backstage), Battaramulla, Kiribathgoda, Kandy, Wattala and at the Bandaranaike International Airport, and two ‘LuvSL’ stores at the Dutch Hospital complex in Colombo and at Queens Hotel, Kandy.