Singer Sri Lanka records excellent growth

• Revenue grows 23% in first half 

• First half net income grows 115% with consolidation of new acquisitions

The Singer (Sri Lanka) Plc Group’s second quarter financial results continued to display excellent growth fuelled by an increase in revenue and net income.

In the second quarter of 2016, the Group’s revenue increased 23% to Rs. 11.6 billion, while net profit improved 60% to Rs. 613.4 million, when compared with the previous year. This included consolidation of new acquisitions.

Group Revenue for the first six months of the year also increased by 23% to Rs. 22.1 billion, showcasing strong underlying growth witnessed last year and an overall increase of 58% growth over a two-year period.

At the end of the first six months of 2016, Group Net Profit was Rs. 1,423 million, an increase of 115% over the previous year. This included consolidation of new acquisitions and related one-time gains.

Contributing to the growth in revenue and net income were the strategic initiatives undertaken by the Group and the continuing customer demand despite increases in interest rates, exchange rates and VAT.

Some of the pursued new initiatives included opening additional shops, adding new dealers and channels of distribution, improving and renovating shops, securing new brands and distributorships and introducing new products and improving processes.

During the first six months, the Group undertook significant initiatives such as the launch of Singer’s own credit card with Visa, the launch of the new Singer Smart TV range under the sub-brand Singer Vista, the opening of digital media corners in retail shops, the expansion of the capacity at its refrigerator factory, the introduction of a new furniture brand for dealers, a thrust into dealer markets for computers and furniture and the creation of an institutional market for digital media and air conditioners.

The Group also continued its successful campaigns for refrigerators, televisions and air conditioners. Growth was witnessed in the product lines of most sectors. Traditional products such as refrigerators, panel televisions and sewing machines continued to perform very well.

There was stronger impetus in the thrust product categories where smart mobile phones sales grew by 53%, deep freezers by 31%, computers by 24%, washing machines increased by 17%, air conditioners and air coolers by an impressive 77% and 65% respectively.

Singer (Sri Lanka) acquired majority stakes in Singer Industries (Ceylon) Plc and Regnis (Lanka) Plc from its parent company Singer (Sri Lanka) B.V. This resulted in a one-time gain on bargain purchase amounting to Rs. 508 million.

Commenting on the Q2 2016 results, Group CEO Asoka Pieris noted: “We are pleased with this quarter’s growth and expect the trend to continue during the remaining six months of the year. Our growth momentum is a result of the Group’s strategic imperatives throughout the first six months and pioneering new business opportunities organically and from acquisitions.”

Chairman Dr. Saman Kelegama added: “These results are a testimony to the continued strength of the Singer brand in Sri Lanka and the company’s focus on product quality and customer service.”
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