Singer Group revenue surpasses Rs. 25 b in 2012

Singer Sri Lanka notched gains in 2012, including a 15% growth in revenue, in spite of challenging macroeconomic conditions. The Group's revenue for the year reached Rs. 25.4 billion, an increase of Rs. 3.3 billion over 2011 revenue.

Hemaka Amarasuriya

Singer Sri Lanka's company only revenue recorded a turnover of Rs. 23.85 billion, a growth of Rs. 2.9 billion. The Group's financial services subsidiary, Singer Finance, shone brightly, increasing both revenue and net profit by 40% and 43%.

The sharp devaluation of the rupee, combined with the increase in interest rates and electricity and fuel costs, created adverse business conditions. Matters worsened with the drought in the third quarter of the financial year and floods in the fourth quarter of the financial year.

The dramatic rise in interest rates significantly impacted Singer Sri Lanka's bottom line. The net finance cost for the year increased by 92% for the Group and by 89% for the company. Taken together, these factors contributed to a 9% decrease in the Group's net profit and a 14% decrease in the company's net profit.

However, the decline had to be viewed in the context of the high growth in profit in 2011. When compared with the financial year 2010 figures, the Group's 2012 net profit is 78% higher while the company's net profit in 2012 is 138% above 2010 levels.

Having adopted the Sri Lanka Accounting Standards (SLFRS/LKAS) presentation format, Singer Sri Lanka had a total comprehensive income for 2012 amounting to Rs. 1.32 billion, compared to Rs. 1.308 billion for the previous year, mainly due to the revaluation of property, plant and equipment.

Given the Group's strong fundamentals and outstanding infrastructure, which includes the country's most extensive retail network and the industry's most widespread service network, and the widest offering of brands to customers, the prospects for growth appear encouraging.

"Singer Sri Lanka offers customers a value proposition, founded on unrivalled product and service quality that is without equal," a spokesman for Singer said.