Richard Pieris records Rs. 20.4b turnover

Richard Pieris and Company PLC achieved a turnover of Rs.20.4b amounting to a growth of 31% while operating profit before interest and tax increased by 26% to Rs.2.1b. Group profit after tax from continuing operations amounted to only Rs. 211m, a drastic drop compared to the previous year.

A sharp increase in interest rates resulted in the Group finance cost escalating by 73% to Rs.1.52b. The company incurred an additional loss of Rs. 167m from discontinued operations, resulting in the profit for the year declining to Rs. 43.7m.

Retailing sector completed another satisfactory year with expansion of our super centres and continuous improvements in internal processes. The sales grew to Rs. 8.2b, an increase of 43% over the previous year, and the profit from operations grew to Rs. 418m.

The Plantations sector recorded impressive results in the year under review. The Sector recorded a robust turnover of 6.8b which resulted in an operating profit before interest and tax of Rs. 1.2b to become the highest contributor to Group profits.

Kegalle Plantations PLC reported finest ever performance in its long history with a 36% growth in operating profits based on successful results in all three areas of activity.

Turnover grew steeply from Rs. 1.8b up to Rs. 2.2b, to register a 19% increase over the previous financial year. Namunukula Plantation PLC's oil palm operation achieved considerable progress with more palm fields reaching optimum yields.

Finally, the plantations sector has been able to improve its St. Claire's tea exports through its 100% owned subsidiary, Maskeliya Tea Gardens (Pvt) Ltd.

The tyre sector recorded a significant turnaround during the year, despite 30% increase in the rubber prices.

Turnover improved by 27% to Rs. 2.7b while operating profits grew from Rs. 11.6m to Rs. 199.4m. The plastics sector, Re-Distribution Division, Rubber Products Exports Sector reflected significant turnaround.