Singer Group records impressive surge in Q3 profits

Singer Group records impressive surge in Q3 profits

11 February 2020 10:00 pm

Reflecting a strong turnaround delivering an impressive surge in Q3 profits for the year 2019/20, the Singer Group posted consolidated profit after tax of Rs. 341.4 million, compared to Rs.17.4 million in the corresponding quarter of the previous year.

The mainstays of this significant improvement was due to growth across key product categories as a result of targeted marketing efforts, an improvement in gross margins as well as a reduction in the Group’s finance costs.

On a cumulative basis for the nine months of FY 2019/20, the Group achieved a growth in profits of 4% to Rs.366.4 million.

Contributing to this momentum was Singer (Sri Lanka) PLC, the marketing arm of the Group, showcasing a notable turnaround, posting a profit after tax of Rs.291.7 million compared to losses of Rs.109.3 million in comparison to the previous year.

Commenting on these results, Mahesh Wijewardene, Group Chief Executive Officer said, “the company is optimistic on the medium to long-term recovery of the consumer durables market, particularly given the recent tax concessions and the relatively accommodative monetary and fiscal policy stance adopted by the Government.

With consumer sentiments demonstrating a gradual recovery following the adverse effects of the Easter Sunday attacks in April 2019, consolidated revenue generated in Q3 amounted to Rs.15.5 billion, a marginal decline over the previous year while for the nine month period the Group recorded revenues of Rs. 42.6 billion.

Meanwhile Q3 consolidated gross profit increased to Rs. 4.6 billion from Rs. 4.2 billion on a cumulative basis. Improvements such as re-pricing decisions in selected products, continued growth in hire purchase interest income and ongoing emphasis on streamlining processes reflect the positive effects of management’s efforts.

Consolidated operating profit recorded a growth of 22% to Rs.1.3 billion in Q3, demonstrating recovering sales volumes, wider gross profit margins and improved cost efficiencies. On a cumulative basis operating profit amounted to Rs.3.2 billion, a marginal decline compared to the corresponding period of the last year