Odel revenue crosses Rs 2 b mark

Sales at Odel crossed Rs 2 b in the first six months of 2012-13 to reach Rs 2.1 b on September 30. Profit before tax for the period was Rs 140.2 m, and net profit totalled Rs 104 m, the company said in a filing with the Colombo Stock Exchange.

The Board of Directors of Odel PLC has proposed an interim dividend of 25 cents per share.

Odel's top line growth of 21 percent over the corresponding half of the past year was attributable to improved sales across the stores in the review period, the company said. A focused effort on improving product ranges and fine tuning operations was responsible for sales growth together with an increase in tourist arrivals.

However, higher interest rates on the company's borrowings had pushed finance expenses up by 91 percent, while operating costs too have risen by Rs 115 m or 27 percent.

In July, Odel recorded a significant change of ownership, with Parkson Retail Asia Limited purchasing a 41.82 percent stake in the company for Rs 1.424 b. The transaction was followed by a mandatory offer to minority shareholders, consequent to which Parkson's stake in Odel increased to 44.55 percent.Odel has since received CSE approval for a 1 for 1 Rights Issue that will raise Rs 2.899 b in capital for expansion of the 22-year-old fashion retail brand.