Singer tops Rs 12 billion in turnover

Singer Sri Lanka continued its strong growth trends during 2006 with net Group revenue increasing from Rs. 10.9 billion to Rs. 12.2 billion (12%) while net revenue of the Company also recorded a 12% increase to Rs. 12.2 billion from Rs. 10.8 billion in 2005.

Gross profit of the Group was Rs. 4,439 million in 2006 as against Rs. 3,583 million in 2005 recording a 24% growth.

The Company's gross profit increased from Rs. 3,533 million to Rs. 4,307 million, an increase of 22%. The increase in Gross Profit percentage over and above the Revenue Percentage was due to commissions on Lanka Bell phone connections.

Gross margin percentage increased from 33% to 36.3% for the Group while the Company's margin percentage increased from 32.7% to 35.6%.

Net profit after tax of the Group was Rs. 490.3 million, a decline of Rs. 2.6 million as compared with the previous year, which, as a percentage, is a marginal decrease of 0.5%. However, profit before tax increased from Rs. 808 million to Rs. 846 million.

The net profits after tax of the Company were only Rs. 427.7 million, Rs. 38.3 million below the previous year's figure. This has been attributed to lower dividend income from associate companies (Rs. 26 million below) and increases in taxes. Again, despite lower dividends the profit before tax increased from Rs. 742 million to Rs. 756 million.

Singer Sri Lanka's 12% increase in turnover was the result of all segments except the agricultural product line contributing towards it. Significant growth was seen in the white goods, particularly refrigerators while Lanka Bell telephone connections and computer sales boosted the sales in the communications segment.

Commenting on the performance during 2006, Chairman Hemaka Amarasuriya has told shareholders that a continuous revenue growth cycle derived from an organic business model commencing 22 years ago remains unabated.

"Singer's strong leadership position and the exemplary ethics we portray in the home appliance industry resulted in the expansion of the respective markets we represent, while developing the independent provincial dealers' strength through our support and helped improve the quality of life in over three million households which are homes to the Singer brand.