Singer's growth momentum continues

Hemaka Amarasuriya

The Singer Group's recently released results showed that it continued its growth momentum. The 2012 first half revenue increased 23 percent over the previous year and the 2012 first half net profit increased by 21 percent.

The group revenue for the first half was Rs. 12.6 billion and net profit was Rs. 680 million.

The Group's results in the first half were impressive considering that they were achieved despite a volatile economy and negative consumer sentiments following the sharp rupee devaluation and sharp increases in interest rates, electricity costs, and fuel prices.

Singer Sri Lanka Group CEO, Asoka Pieris said that the increase in interest rates was "a major concern to all in the business sector." The Average Weighted Prime Lending Rate had soared dramatically from 9.4 percent a year ago to 13.8 percent. He pointed to the lower taxes in the current year as a key factor in the improvement of after-tax profits for both the Group as well as the Company. A spokesman for the company said, "One of the continuing factors for the Group's consistent success is its position as the country's leader in consumer durable retailing.

It continued to consolidate this position in the first half of the financial year, with an impressive growth in a number of product categories. For example, sales of Microwaves increased by 510 percent compared to the corresponding period of the previous year, while sales of Irons rose by 141 percent."