The first quarter financial results of FY2016/17 reflected mixed fortunes for Softlogic Holdings PLC.
The floods and landslides that affected Sri Lanka in May, had taken its toll on some parts of the economy dampening the business sentiment further.
Healthcare Services reported a top line of Rs. 2.4 Bn, a 4.6% increase, during 1QFY17 with sector’s operating profit reaching Rs. 428.3 Mn, down by 14.1% to conclude quarterly PAT at Rs. 296.0.
The introduction of VAT to the healthcare sector resulted in some services being viewed by the public as too expensive to bear, which adversely affected the quarter results of this sector. However, with the suspension of VAT subsequently, sector’s performance has been restored. Nonetheless, Group revenue increased a strong 13.3% to Rs. 14.8 Bn for the quarter. Group turnover was primarily dominated by its fully owned sectors – Retail (32.1%) and ICT (30.6%). Financial Services improved its contribution to Group revenue to 17.2% whilst Healthcare Services sustained its turnover contribution at 16.4%. Automobiles continued with a marginal contribution as plans are underway to improve the sector performance in the periods to come.
Gross Profit registered a marginal improvement of 4.2% to Rs. 4.5 Bn during the first three months of the financial year. Despite increasing business activities, operational cost margins were optimized at 24% during the period with operational expenses increasing 14.5% to Rs. 3.5 Bn. Distribution costs increased 30.3% to Rs. 853.0 Mn whilst administrative costs registered an increase of 10.2% to Rs. 2.7 Bn during the quarter. Other operating income, primarily composing of fees received for new loans at Softlogic Finance PLC increased 53.9% to Rs. 298.4 Mn. Subsequently, results from operating activities reached Rs. 1.3 Bn for the quarter under review.
Finance Income continued to contract on the back of unrealized fair value gains at Asian Alliance Insurance PLC’s investment portfolio with increasing interest rates affecting its bond portfolio. ICT revenue was up 19.6% to Rs. 4.5 Bn for the quarter. ‘Samsung’ operations led the sector performance followed by ‘’Microsoft’ and ‘HTC’.
Movenpick hotel fit-out is at final stages with testing and commissioning work expected to start in October so that the hotel will be operational by January 2017. This would be the country’s first five-star hotel in three decades.
The floods and landslides that affected Sri Lanka in May, had taken its toll on some parts of the economy dampening the business sentiment further.
Healthcare Services reported a top line of Rs. 2.4 Bn, a 4.6% increase, during 1QFY17 with sector’s operating profit reaching Rs. 428.3 Mn, down by 14.1% to conclude quarterly PAT at Rs. 296.0.
The introduction of VAT to the healthcare sector resulted in some services being viewed by the public as too expensive to bear, which adversely affected the quarter results of this sector. However, with the suspension of VAT subsequently, sector’s performance has been restored. Nonetheless, Group revenue increased a strong 13.3% to Rs. 14.8 Bn for the quarter. Group turnover was primarily dominated by its fully owned sectors – Retail (32.1%) and ICT (30.6%). Financial Services improved its contribution to Group revenue to 17.2% whilst Healthcare Services sustained its turnover contribution at 16.4%. Automobiles continued with a marginal contribution as plans are underway to improve the sector performance in the periods to come.
Gross Profit registered a marginal improvement of 4.2% to Rs. 4.5 Bn during the first three months of the financial year. Despite increasing business activities, operational cost margins were optimized at 24% during the period with operational expenses increasing 14.5% to Rs. 3.5 Bn. Distribution costs increased 30.3% to Rs. 853.0 Mn whilst administrative costs registered an increase of 10.2% to Rs. 2.7 Bn during the quarter. Other operating income, primarily composing of fees received for new loans at Softlogic Finance PLC increased 53.9% to Rs. 298.4 Mn. Subsequently, results from operating activities reached Rs. 1.3 Bn for the quarter under review.
Finance Income continued to contract on the back of unrealized fair value gains at Asian Alliance Insurance PLC’s investment portfolio with increasing interest rates affecting its bond portfolio. ICT revenue was up 19.6% to Rs. 4.5 Bn for the quarter. ‘Samsung’ operations led the sector performance followed by ‘’Microsoft’ and ‘HTC’.
Movenpick hotel fit-out is at final stages with testing and commissioning work expected to start in October so that the hotel will be operational by January 2017. This would be the country’s first five-star hotel in three decades.
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