Softlogic Holdings turnover crosses Rs. 45 Bn, up 9.9-pct

softlogic

Earnings Review

–          Group’s cumulative turnover crossed Rs. 45 Bn (up 9.9%) for period ending 31 December 2016 while the quarterly revenue improved marginally to Rs. 15.7 Bn. This slow growth was primarily due to the Group’s substantial downsizing of ‘Nokia’ operations.

–          Consolidated Gross Profit increased to Rs. 4.7 Bn during the second quarter of the financial year with cumulative first half Gross Profit increasing to Rs. 9.2 Bn.

–          Group EBITDA for the cumulative period was Rs. 5.8 Bn with the quarter reporting Rs. 1.9 Bn.

–          The change in insurance contract liabilities excludes the Life Insurance surplus for the December quarter pending approval of the Regulator and will be accounted for in the March quarter.

–          Quarterly PBT was Rs. 274.1 Mn while the cumulative PBT reached Rs. 1.5 Bn.

–          PAT for nine months of FY2016/17 was Rs. 1.1 Bn with 3QFY17 reporting Rs. 351.8 Mn.

Outlook

The opening of Mövenpick City Hotel, a substantial investment of the Group, received rave reviews from the industry. This is the first new five-star luxury hotel to operate after almost three decades in the city of Colombo. The Group’s diversity is well entrenched although the economic outlook is beset by unforeseen challenges.

ODEL Mall will commence in the near future so that its unrivalled leadership in retailing would take the country to its next level of consumerism and life style improvements.

With Asiri Kandy, the Central Province will see its landscape change offering the best services in the medical world.

The Group’s outlook has tremendous potential for increasing its overall value substantially through its strategic investments in growing sectors of the economy.