Feb 13, 2014 (LBO) – Profits at Sri Lanka’s Odel Plc, a fashion retailer fell 40 percent to 46.0 million rupees in the December 2013 quarter from a year earlier, amid weaker sales and narrower margins, interim accounts showed. The firm reported earnings of 17 cents per share for the quarter. In the nine months to December it reported earnings of 72 cents per share on total profits of 195 million rupees up 12 percent.
In the nine months sales were down 2.5 percent to 3.4 billion rupees, due to a slowdown in retail sales and the imposition of a value added tax, the firm said.
In the December quarter revenues fell 1.5 percent to 1.38 billion rupees from a year earlier, costs rose 2.5 percent to 875 million rupees and gross profits narrowed 7.9 percent to 504 million rupees.
Other income rose to 55 million rupees from 0.8 million rupees a year earlier and interest expenses also fell to 36 million rupees from 52 million rupees a year earlier, helping cushion the bottomline.
Odel said it had refurbished and upgraded a store in Nugegoda, a suburb of Sri Lanka’s capital Colombo, re-launched its store at the main international airport and opened two stores in Negambo and Ja-Ela, north of Colombo.