Oct 21, 2011 (LBO) – Sri Lankan fashion retailer Odel’s group net profit for the six months to September 30, 2011 rose 21 percent to 122 million rupees from a year ago driven by higher sales from existing stores and new ones. A note to the accounts said Otone (Pvt) Ltd, a fully owned subsidiary of Odel, has been liquidated during the period but its business operation were continuing under the parent firm. Sales in the first half of the year grew 13 percent to 1.7 billion rupees. At company level net profit fell five percent to 88 million rupees from the previous year.
Basic earnings per share rose to 84 cents from 74 cents and the firm approved an interim dividend of 25 cents per share, which a statement said translates to a dividend payout of 29.6 percent.
The company did not give a breakdown of profits for the June 2011 quarter.
In the first half the accounts showed sharp increases in finance and distribution expenses. Finance costs rose 53 percent to 45 million rupees while distribution costs went up 30 percent to 106 million rupees.
“Group turnover (was) bolstered by the consolidation of revenue from new stores in Kiribathgoda (March 2011), Kandy (May 2011) and Wattala, which opened in September, four d