Singer gross profit up 13% to Rs.4,887 m in 2007

Singer (Sri Lanka) Gross Profit of Rs. 4,887 million for 2007 registered a 13% increase over the previous year, and Company Revenue grew by 12%, according to the review of its financial results for 2007.

However, macro-economic factors depleted Net Profit of Rs. 310.6 million which was 27.4% lower than the previous year. Business growth saw investment in human resource, an increase of nearly 10% and infrastructure improvement by way of renovation and expansion of the sales distribution network.

Macro-economic factors which hindered growth included double digit inflation and a continuingly depreciating rupee, increase in fuel costs and import tariffs, high interest rates and the unstable security situation (which in particular meant that many of the markets in the North and East could not perform to full potential).

Despite a lower Net Profit than the previous year, the Company made several strategic gains. The company clinched the coveted national distributorship for Samsung, the leading global electronics brand.

Another enviable gain was the 'acquisition' of Hayleys' consumer products channel which underpinned progression towards a comprehensive expansion of the Company's retail presence throughout the island.

Similarly the introduction of the Nokia sales agency immensely added to brand stature. Singer (Sri Lanka) Chairman Hemaka Amarasuriya said: 'Our aim in the last financial year was to retain the Company's position as a national retailing icon with consumer-centricity as our focal point.'

Indeed with a multi-brand strategy encompassing global names such as Samsung Whirlpool, Philips, Hitachi, Moulinex, Rowenta, Panasonic, Nokia, Toshiba and more, Singer (Sri Lanka) serves a customer base of over four million households. Focus also shifted in the year under review from brand and category management to channel management.

The company built on the strengths of its retail channels - Singer Plus, Singer Mega, Sisil World and Modern Homes along with trade and institutional channels.

In 2007, for the first time Singer Mega achieved sales of over Rs. 1 billion, a 32% increase over the previous year. Five of the nine Singer Mega stores achieved sales of over Rs. 100 million.