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| Sunday, 14 November 2004 |
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Business |  |
| News Business Features Editorial
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Richard Pieris increases pre tax profits The Richard Pieris Group announced impressive results when presenting its half yearly report resently, highlighted by the achievement of an 87% increase in gross turnover to Rs. 4.5 billion and a 219% increase in profit from operations to Rs. 443 million, compared to the corresponding period in the prior year. Profit before tax and minority interest amounted to Rs. 347 million, an improvement of 133%, with Profit attributable to ordinary shareholders being reported at Rs. 237 million, an increase of 121%, when compared with the same period in the prior year. The Plantation sector was the largest contributor to half yearly profits for the Group, accounting for over 40% of the Group's operating profit. It also contributed Rs. 1.43 billion to gross turnover. Despite a reduction in its tea crop output, Maskeliya Plantation Ltd., achieved a turnaround in operating profitability from a Rs. 6 million loss at this point last year, to a Rs. 66 million profit this year, due predominantly to higher tea prices achieved, confirming its status as the producer of the finest teas in the region. Kegalle Plantations Ltd., also strongly contributed to the sector's profit, taking advantage of high rubber prices. The Rubber sector also experienced an exceptional half year, increasing their turnover by 65% to over Rs. 1.24 billion with operating profits rising by 119% for the period. The exports division experienced a resurgence in the sale of rubber mats in the US, European and Asian markets. This coupled with continued strong growth in sales of natural latex mattresses and pillows worldwide gives reason for optimism, but this positive outlook is tempered by the current high costs of raw material which have resulted in margins being eroded. The turnover for the Retail and Distribution sector rose by over 33% to Rs. 1.85 billion. A significant rise in revenue from the supercentres was the main contributing factor to the impressive performance of the Retail division. Three new franchised showrooms which opened during the six months under review also contributed. The forthcoming Christmas season is expected to significally add to turnover of the sector, as will the opening of a new Supercentre at Nawinna in early 2005. A company spokesman outlined that the strengthening of the sales force in the distribution division which service the 5,000 strong island wide dealer network, the introduction of new products and a geographically focused market penetration plan were the primary reasons for a 50% increase in sales. |
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