Richard Pieris records Rs 2.3b PBT

The Richard Pieris Group ended its performance in financial year 2013-14 reporting a Group revenue of Rs. 34.7 billion with a Profit Before Tax of Rs. 2.3 billion. The reported profit for the year does not include any gains of a capital nature.

After a successful seasonal campaign, the retail sector had a relatively quiet quarter but its marketing activities gained momentum towards the latter half of the quarter with the launch of the Avurudu campaign.

During the quarter which ended on March 31, 2014 the sector launched Sri Lanka's first ever retail co-branded credit card with Standard Chartered Bank. This privileged Visa credit card provides numerous rewards and benefits to users.

The plastics and distribution sector faced a range of challenges during the quarter ended March 31, 2014, which included unfavourable market conditions and low purchasing power of consumers 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, while focusing on reducing overheads to enhance their competitiveness and profitability it also focused on minimum work-in-capital investments to optimise costs.

The impact of the wage increase in the plantation sector had its impact on the results. Rubber prices were down compared to last year and had an adverse impact on the results.

There was an increase in coconut production due to favourable weather conditions and prices. The total production of oil palm also increased compared to the corresponding period of the previous year and oil palm prices continued to increase.

However, there was a decline in the production of tea compared to last year though the prices improved.

In a challenging financial year the tyre sector performed exceptionally well and benefited from low raw material prices. It further expanded its product portfolio with the introduction of a new mini truck tyre 'Hida' which was introduced to the market at a competitive price.

The rubber manufacturing sector ended the financial year on a positive note where it reaped the benefits of many restructuring activities which took place over the past 24 months.

The results were marginally higher than the previous year which is commendable in a financial year where most of the sectors faced many challenges.

The sector continued to focus on many marketing activities and participated in several international fairs and exhibitions. With the present level of success, the sector has many expansion plans for the future. The Group continues to focus on its core sectors and will use local and global opportunities to expand business.

Planned expansion in retail operations will continue and a large format retail outlet was opened in Panadura in May 2014.

A spokesman for the company said that the Group is considering many expansion opportunities and new activities taking into account the strength of the Group in the different sectors for long-term growth.