Singer (Sri Lanka) PLC announced its results for the first half ended September 30, 2018. Despite tough business conditions, the results for the six months showed a commendable revenue growth of 14% to Rs. 28.6 billion compared to the same period in the previous year.
In the period under review, the Group profit before tax reported was Rs. 561 million while Group net profit recorded Rs. 335 million. Excluding the impact of exchange loss of Rs. 167 million, Group net profit for the first half was Rs. 456 million.
Traditional high margin products had low growth and gross margins reduced to 27.8% compared to 28.8% last year. However the Group successfully lowered selling and administration expenditure from 21.4% last year to 20.9% in the current year. The second quarter Group Revenue increased by 13% and Group operating profit increased by 7% to Rs. 859 million compared to the prior year.
While the business conditions remain challenging due to new import restriction and further devaluation, the Company anticipates improvements following expected improved harvest and pick up in the agriculture related industries.
Commenting on the results, Mahesh Wijewardene, the newly appointed Group Chief Executive Officer said “Although the business environment is challenging, Singer is confident of increasing market share and maintaining our market leadership in consumer durables.”
Group Chairman, Mohan Pandithage said “Hayleys Group, as the major shareholder, is confident of Singer’s continued growth and leadership in the consumer durables industry. With the combined synergies of Hayleys Group and Singer Group we can anticipate significant growth from our new key business initiatives.”