Odel posts 21% sales growth in 3Q
Odel has reported a turnover of Rs 3.47 b for the nine months ending
December 31, 2012, posting a growth of 21 percent over the corresponding
period of the previous year.According to financial statements filed with
the Colombo Stock Exchange, the fashion retailer has achieved a profit
before tax of Rs 253.9 m at the end of the third quarter of the year, an
improvement of 8 percent.Net profit for the nine months was up 5 percent
to Rs 185.8 m.In July 2012 Parkson Retail Asia Limited purchased a 41.82
percent stake in the company for Rs 1.424 b and increased its holding to
47.46 per cent at the conclusion of the subsequent mandatory offer to
minority shareholders and a 1 for 1 Rights Issue in December 2012 that
raised Rs 2.5 b in capital.
Subsequent to this infusion of capital, Odel has reduced its interest
bearing borrowings to Rs 738 m as at December 31, 2012 from Rs 1,277 m a
year ago, and reported cash and bank balances of Rs 2 b at the end of
the period under review. The company's stated capital increased from Rs
251.9 m at the end of 3Q 2011-12 to Rs 2.795 b at December 31, 2012.
CEO Ms. Otara Gunewardene said, "While we are encouraged by the
growth in sales across the store network, we remain cautious in
forecasting the year end results for Odel, mainly due to the possible
impacts of the VAT that was introduced from January 1, 2013. However, we
are optimistic as we feel that we have laid the foundation for long term
growth and Odel is now ready to enter its next phase of development."
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