Nov 06, 2012 (LBO) – Sri Lanka’s Odel Plc, a 44 percent owned by Parkson Retail Asia said profits fell 15 percent to 104 million rupees, from a year earlier as a higher interest bill hit the bottom line though revenues continued to grow. The fashion retailer reported earnings of 72 cents per share for the half year.
Revenues grew 21 percent to 2.1 billion rupees and cost of sales grew at a faster 23 percent to 1.28 billion rupees, and the firm grew gross profits 19 percent to 813 million rupees.
But interest costs rose 91 percent to 85.3 million rupees in the half year.
The firm has 498 million rupees of long term borrowings and 945 million rupees of short term borrowings. Sri Lanka’s interest rates rose following a credit bubble which pushed the country into a balance of payments crisis.
In July Parkson Retail Asia bought 44 percent of the firm and has made a cash call to raise 2.2 billion rupees to expand.
“We are encouraged by the growth in sales across the store network,” chief executive Gunewardene said.
“This year is one of consolidation and the focus is to improve all areas of operations across the business.
“We are optimistic of a similar trend for the second half of the year. The proceeds