The Singer Group announced results for the nine months ending September 30th 2017 with revenues increasing to Rs. 37.0 billion, an increase of 12% compared to the same period last year, demonstrating resilience by growing competitively and consistently in tough market conditions, a press release said.
It adds â During the quarter a major milestone occurred with the majority shares of Singer (Sri Lanka) PLC being purchased by Hayleys Group from Retail Holdings (Sri Lanka) B.V., thus making Hayleys the new parent company of the Singer Group.
âBoth companies together have ensured a smooth and seamless transition where Singer will continue to pursue its programmes and strategies to retain its market leadership in consumer durables. Additionally, synergies with Hayleys and its associate companies augurs a brighter future for the Singer Group and its stakeholders.
âCompany Net Profit also decreased 32% for the first nine months to Rs. 544.9 Million. The third quarter was largely affected due to a reduction in harvesting incomes. As a result, the third quarter revenue increased at a slower pace of 8%.
âNet Finance Cost for first nine months of 2017 increased by 44% to Rs. 1,494 million largely due to an increase in interest rates. The lower margins and higher interest rates have both impacted group profitability.
âChallenging market conditions, notably the continuous drought in the dry zone, reduction in customer purchasing power due to currency devaluation, increased value added tax (VAT) and higher interest rates and floods in the wet zone contributed to the decrease in the demand for consumer durables.
âAs a result of the adverse conditions, the company too could not increase prices, and gross margins reduced to 29% in the first nine months compared to 31% last year. The increased mix of smart phone sales, which have lower margins, also impacted the overall group gross margins.
âHowever, the group was successful in lowering selling and administration expenses from 22.6% last year to 21.7% in the current year.
âThe company is anticipating gradual improvements in the business conditions during the remainder of 2017 and in 2018 while pursuing strategies to improve margins and lower costsâ.
Sri Lanka’s tourism industry is grappling with lower number of licensed tour guides, which could…
The National Chamber of Exporters of Sri Lanka (NCE), ahead of the country’s upcoming presidential…
Samagi Jana Balawegaya (SJB) presidential candidate Sajith Premadasa said that state-owned enterprises (SOE) can no…
Japan is prepared to "do its part" over Sri Lanka's debt issue, but other creditors,…
With the decrease in demand, fuel shortages and increase in leasing interests, the prices of…
The ICC announced that the winning side at the ICC Men's T20 World Cup 2022…