ODEL posts exceptional growth in Q1

ODEL has reported remarkable revenue and profit growth in the first quarter of 2010 - 11, a period that preceded its milestone initial public offer.

In figures released to the Colombo Stock Exchange, the high-profile brand reported a four-fold growth in group profit before tax to Rs 60.2 million for the three months ended 30th June 2010, which is a 272 per cent improvement over the corresponding quarter of last year.

Profit after tax grew by 199 per cent to Rs 37 million in the quarter reviewed, while turnover for the period, at Rs 692 million, reflected an increase of 62 per cent.

ODEL CEO Otara Gunewardene said higher tourist arrivals, efforts to make the brand more accessible to local consumers and a focused consolidation of business operations had contributed to the growth.

"Same store sales showed considerable growth year-on-year while the newly opened stores at Mount Lavinia, Moratuwa, Panadura and Maharagama performed above expectations.

With the anticipated surge in tourist arrivals as well as a continued increase in local consumer demand, we are confident we will see strong growth going forward," she said. ODEL's latest store at Battaramulla opened on July 16, after the review period. ODEL offered 16.7 million ordinary shares to the public on July 5 at Rs.15/= per share.

The issue was oversubscribed by 64 times and closed on the same date.

The ODEL share commenced trading on the Colombo Stock Exchange on August 4.