Singer (Sri Lanka) PLC results for Q1 ended June 30, 2019 indicated a Group revenue at Rs.13.9 billion, when compared to Rs. 15.1 billion during the previous year.
The Group recorded an operating profit of Rs. 1,065 million for the Q1 compared to Rs. 1,284 million realised during the previous year. Group administrative and selling expenses increased by 4%.
The Group’s profit before tax recorded Rs. 93 million, 86% below the previous year. The profit after tax was Rs. 52 million in comparison to Rs. 450 million achieved last year.
The overall slowdown in momentum due to consumers opting to postpone buying, the Easter Sunday attacks creating uncertainty and income limitations under current market and economic conditions have all contributed towards the bottom-line slide.
Group Chief Executive Officer Mahesh Wijewardene said, “We experienced a challenging quarter with Singer susceptible to market and economic conditions more than others. However, we have initiated several proactive and innovative strategies which aim to enhance earnings growth and profitability in the near future.”
Group Chairman Mohan Pandithage said, “Singer’s Q1 was a difficult quarter for consumer durable market segments. Improving the operational performance of the company together with various initiatives we aim to maintain a positive outlook for the rest of 2019.”
A majority of the Group’s subsidiaries also faced a challenging quarter. The parent company, recorded profit of Rs. 11.5 million against Rs. 199.0 million in the previous year, Singer Finance (Lanka) PLC reported a profit of Rs. 49.0 million compared to Rs. 117.6 million last year, Regnis (Lanka) PLC Group profit was Rs. 20.0 million during the quarter against Rs. 20.6 million in Q1 last year, Singer Industries (Ceylon) PLC made a loss of Rs. 1.3 million in the first quarter versus a profit of Rs. 4.2 million in the previous year.
The Group and Company results were adversely impacted due to significant impairment losses on trade and hire purchase receivables, provisioning in compliance with the new SLFRS standard.
Net finance cost increased to Rs. 896 which was mainly due to higher Group borrowings and relatively high cost of funds in the market and interest cost derived from the Lease liabilities recognized in line with the new SLFRS 16 Leases, which has been made at best estimate at the initial application.
Singer (Sri Lanka) Group is the largest retailer, financier and manufacturer of consumer durables in Sri Lanka. The company has 437 retail stores as well as a fast growing e-commerce platform. The company also serves over 2800 dealers/sub retailers. It is also renowned for its after-sales service network with 14 Regional Service Centres and over 300 service agents. Apart from its house brands, the company is exclusive distributor for many well-known international consumer durable brands.
Singer commenced business in Sri Lanka in 1877 and shares of the company are publicly traded on the Colombo Stock Exchange.