Softlogic Holdings PLC is to raise over Rs.7 billion for the purpose of restructuring the balance sheet and improving key capital ratios by way of a private placement, rights issue and internal restructuring. said its Chairman, Ashok Pathirage.
“Going forward this exercise would no doubt reduce finance cost and significantly impact our credit rating,” he added.
Commenting on their interim results for period ending December 31, 2017 he said that for a consumer-retail-focused conglomerate such as Softlogic, a challenging operating climate was witnessed during the period. “This was especially evident in the retail sector, which was further compounded by the high interest rate regime, the rising inflation levels, the inclement weather and the VAT increase.”
Despite these systemic challenges, Group revenue grew 10.3% to Rs.49.4 billion during the first nine months of this financial year while the quarterly revenue grew 17.7% to Rs. 18.3 billion. (bn)
Cumulative Group top-line witnessed a contribution of 31.8% from the retail sector followed by ICT (26.3%), healthcare services (18.2%), financial services (16.3%) and leisure (3.5%). gross profit increased 22.5% to Rs. 17.6 bn during the 1-3Q-FY18 reflecting strong GP margin improvement from 32.1% in 1- 3QFY17 to 35.7% in 1-3QFY18.
The quarter too registered GP margin improvements from 33.3% in 3QFY17 to 35.3% in 3QFY18 pushing the quarterly gross profit to Rs. 6.5 bn (up 24.9%).
Distribution and administrative expenses increased 10.8% and 14.4% to Rs. 2.5 bn and Rs.9.8 bn respectively during the period resulting in the total operational expenses, which now includes Movenpick Hotel Colombo, to increase to Rs. 12.3 bn (up 13.6%) while maintaining the operating cost margins at 24% levels during 1-3QFY18.
Quarterly operational cost increase remained moderate at 8.8% to Rs. 4.3 bn Other operating income for the period was to Rs. 1.9 billion (Rs. 741.5 mn in 1-3QFY17).
Cumulative operating profit improved 67.2% to Rs. 7.2 bn while the quarter registered 124.3% increase to Rs. 3.1 bn
Finance Income which primarily consists Softlogic Life Insurance PLC’s investment portfolio’s performance, increased 52.6% to Rs. 879.5 million during the nine-month period while the quarter registered 87.9% growth to Rs. 308.2 million.
“We are awaiting the launch of Asiri Hospital Kandy, which would be the first state-of-theart 190-bed hospital to cater to the Central, North and Eastern provinces. This facility will include state-of-the-art technology specializing in cardiac, some of which will certainly be a first for the region.
“Odel will take 100,000 sq.ft of mall space in Shangri La which is expected to open in June 2019 and plans are progressing well to unveil one of the city’s authentic malls The Odel Mall in 2020.”
www.dailynews.lk
“Going forward this exercise would no doubt reduce finance cost and significantly impact our credit rating,” he added.
Commenting on their interim results for period ending December 31, 2017 he said that for a consumer-retail-focused conglomerate such as Softlogic, a challenging operating climate was witnessed during the period. “This was especially evident in the retail sector, which was further compounded by the high interest rate regime, the rising inflation levels, the inclement weather and the VAT increase.”
Despite these systemic challenges, Group revenue grew 10.3% to Rs.49.4 billion during the first nine months of this financial year while the quarterly revenue grew 17.7% to Rs. 18.3 billion. (bn)
Cumulative Group top-line witnessed a contribution of 31.8% from the retail sector followed by ICT (26.3%), healthcare services (18.2%), financial services (16.3%) and leisure (3.5%). gross profit increased 22.5% to Rs. 17.6 bn during the 1-3Q-FY18 reflecting strong GP margin improvement from 32.1% in 1- 3QFY17 to 35.7% in 1-3QFY18.
The quarter too registered GP margin improvements from 33.3% in 3QFY17 to 35.3% in 3QFY18 pushing the quarterly gross profit to Rs. 6.5 bn (up 24.9%).
Distribution and administrative expenses increased 10.8% and 14.4% to Rs. 2.5 bn and Rs.9.8 bn respectively during the period resulting in the total operational expenses, which now includes Movenpick Hotel Colombo, to increase to Rs. 12.3 bn (up 13.6%) while maintaining the operating cost margins at 24% levels during 1-3QFY18.
Quarterly operational cost increase remained moderate at 8.8% to Rs. 4.3 bn Other operating income for the period was to Rs. 1.9 billion (Rs. 741.5 mn in 1-3QFY17).
Cumulative operating profit improved 67.2% to Rs. 7.2 bn while the quarter registered 124.3% increase to Rs. 3.1 bn
Finance Income which primarily consists Softlogic Life Insurance PLC’s investment portfolio’s performance, increased 52.6% to Rs. 879.5 million during the nine-month period while the quarter registered 87.9% growth to Rs. 308.2 million.
“We are awaiting the launch of Asiri Hospital Kandy, which would be the first state-of-theart 190-bed hospital to cater to the Central, North and Eastern provinces. This facility will include state-of-the-art technology specializing in cardiac, some of which will certainly be a first for the region.
“Odel will take 100,000 sq.ft of mall space in Shangri La which is expected to open in June 2019 and plans are progressing well to unveil one of the city’s authentic malls The Odel Mall in 2020.”
www.dailynews.lk
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