Singer optimistic about future despite dip in profits

Anticipating strong medium term growth prospects, Singer Sri Lanka, one of the leading consumer durables retailers in the country, continued to make infrastructure improvements during the financial year 2013, a media release from the company said.

Asoka Peiris

The company carried out renovations and expansion of its retail network and added new shops. Singer Sri Lanka has nearly 400 retail outlets islandwide.

However, difficult business conditions continued to impact the company's bottom line.

While collecting receivables posed certain difficulties, the Singer Group performed better than the rest of the industry in this operational area, due to its outstanding culture, use of state-of-the-art ERP system and call centre service, and SMS reminders with more traditional collection drives.

Although the Singer Group's gross sales revenue increased during the first three quarters of the financial year, the application of the Value Added Tax regime to the retail sector resulted in net revenue decreasing by 1%.

However, Singer Sri Lanka's communications segment continued to impress, with revenue increasing by 130%.

While revenue dipped marginally, expenses increased due to inflation and high electricity tariffs and finance costs increased by 55%, due mainly to higher interest rates. The combination of these factors led to a fall in profits of 54% and 64% for the Group and Company.

The company's retail strength, however, transforms economic challenges into business opportunities. Retail space has become more affordable, while new brands and agencies have become available to Singer.

In the third quarter of the current financial year, the Company launched the cutting-edge Huawei Ascend P6 smartphone.

The company also continues to strengthen its relationships with customers, introducing an integrated Customer Loyalty Program that further enhances Singer's value proposition.