Richard Pieris posts Rs. 16.7 b revenue

The Richard Pieris Group ended its first half year's performance with a Group Operating Profit of Rs.1.1 billion, a decline compared to the corresponding period of the previous year, the company said in a statement released to the media.

Dr. Sena Yaddehige

The impact of the wage increase in its Plantation Sector and the negative effects of the economic downturn which had its force on consumer spend.

The reported Revenue for the Group for the first half year of 2013/14 was Rs. 16.7 billion, marginally lower than that of the previous year.

The retail sector of the Group continued its marketing activities in challenging economic conditions and the popular 'Privileged family beach holiday' campaign was conducted for the fourth consecutive year.

Despite the downturn in business, expansion plans are well under way in selected strategic locations.

The negative sentiments on consumer confidence continued to be evident throughout the quarter under review.

Therefore, the company continued to focus on managing overheads and inventory.

The sector faced a range of challenges during the quarter ended September 30, 2013, which included unfavourable market conditions, bad weather, and low purchasing power of consumer due to adverse economic conditions.

The Sector's products do not constitute a purchase priority in daily life and this proved to be a drawback in the phase of the sluggish economy and the reduced spending power of consumers.

However, each of the sector's SBU's continued to search for market opportunities, introduced effective competitive pricing mechanisms, focused on reducing overheads to enhance profitability, and on minimum work-in-capital investments to optimise costs.

The wage increase in the last quarter for plantation sector employees impacted on the results.

The drop in rubber prices, poor crops and drop in export volumes affected the sector's performance negatively. There was a significant increase in the crop and the prices obtained for oil palm.

The tyre sector of the Group reported an increase in profits compared with the previous year.