Sri Lanka consumer durables group, sales, profits drop

(L-R) : Jeevith Senaratne, Director Operations - Star Garment Group; Shanaka Rabel, Group Chief Digital and Transformation Officer - Stretchline Holdings Ltd; Janaka Botejue, Chairman – Bernard Botejue Industries; Sanjeewa Kodikara, Chief Information Officer- Hirdaramani Group

Nov 18, 2013 (LBO) – Profits and revenues at Singer (Sri Lanka) Plc, a top consumer durables seller dropped 67 percent to 62 million rupees in the September 2013 quarter from a year earlier, amid tight economic conditions. Furniture, transport and agro products also dropped. But communications sector rose to 871 million rupees from 338 million rupees.

The group reported earnings of 50 cents per share for the quarter. For the nine months to September earnings were 2.93 rupees per share on total profits of 366 million rupees down from 846 million rupees a year earlier.

Revenues dropped from 6.0 billion rupees to 5.88 billion rupees in the quarter and cost of sales dropped to to 3.7 billion rupees from 3.8 billion rupees.

“The business environment continued to be difficult with low demand by the customers and difficulty in collection,” chief executive Ravi Pieris told shareholders.

“The consumer segments served by Singer continued to be affected by the high electricity charges.”

The retail sector had come under value added taxes, electricity charges were higher at showrooms and interest costs rose.

Sri Lanka is recovering from a balance of payments crisis, triggered by bank credit to state energ

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