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| Sunday, 16 March 2003 |
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Business |  |
| News Business Features Editorial
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Singer joins top revenue earners' club Singer Sri Lanka is aiming for a revenue growth of 15 per cent this year while profits are estimated to grow steadily. The company has recorded a profit of Rs 1.7 million compared to last year's Rs 1.5 million, an increase of 12 per cent. The net turnover increased from Rs 4.5 billion to Rs 5.1 billion, an increase of 12.6 per cent over 2001. "This revenue achievement is the highest in our corporate history. It was important to pass the psychologically demanding barrier of five billion rupees and join the club of top revenue earners," Chairman Hemaka Amarasuriya stated. He has cited the expansion of distribution channels and the multi-branding strategy as the reasons for this growth. The consumer electronics and kitchen-related product markets expanded during the year and Singer has enhanced the percentage share of these businesses. The agro product category too has played a dominant role to increase growth along with the revival of the harvest economy in the rural hinterland. Singer sells its products through 228 outlets and 475 independent dealers. The brand is represented in every township. Singer one-stop-shops had provided consumer finance to over 160,000 customers at the close of the year. "In the past, the Singer brand dominated our product offering. Today, 33 per cent of our revenue comes from other world renowned brands which get the support of Singer services," Amarasuriya said. "It is a corporate policy to offer our customers brand variations at multiple price points to enrich the shopping experience. This has paid rich dividends", he said. It is important to monitor expenses in a growth phase. Fixed expenses were controlled well below the inflation rate of 9.6 per cent and grew at a dissimilar rate of 5.7 per cent. Advertising and promotion costs increased as a future investment, accounting for 4.5 per cent of net revenue. The headcount was reduced from 755 to 725 while several non-productive jobs were shelved. Financing of operations has been gradually restructured over the years. With falling interest rates, more opportunities have opened up for Singer to move away from short-term borrowings to stable long-term debentures outstanding at Rs 700 million at close, with an SLA credit rating from Fitch Rating. |
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