Singer reaches new high in first half of 2005

Singer Sri Lanka reached a new half-yearly high turnover of Rs 5.3 Billion in 2005 recording a significant growth rate of 29.4% over the same period last year.

All channels of distribution gained sales over the industry norm during this period. Growth was particularly seen in the Singer Mega Channel, the traditional Retail and Wholesale Channels and in the Modern Homes network.

Describing the 2005 first half year as a period of volatility for Sri Lanka, Singer Chairman Hemaka Amarasuriya said that the impact of the tsunami was felt heavily on trading, particularly in January and February after which markets settled in affected areas to resume normal trading.

"Volatility and unpredictability of interest rates dampened retailing initiatives while a heavy tax burden imposed on the 'so called' luxury goods, which are essentials to mankind, stretched the wallets of regular customers," he points out in his half yearly review.

Considering that there was a short supply of sewing related products due to component delays in the first half and with the impact of tsunami behind, he predicts that the second half year growth appears promising and is expected to be sharper than the first.

Summing up the progress, he has told the shareholders that while all categories grew significantly, sewing related products, furniture and transportation gained by over 40%.

Consumer electronics and white goods sales were stifled by additional value added taxes. However, they grew by over 20% though flat in absolute volume terms.

"A further increase of taxes by 2% in August appears to be aimed at gradually sending these aspirational markets into quiet decline", he states.

The net profit recorded is Rs 269 million, an increase of 8.2% over the previous year. As for future plans, Chairman Amarasuriya said that the fulcrum of the growth strategy is to fill strategic voids in the distribution network, upgrade the Singer retail stores and strengthen the channels of distribution through T.Q.M.

"We will be strengthening our core-businesses of home appliances, consumer sewing, home furniture and financial services, while seeking investment opportunities in synergistically linked business models", he said.