ODEL continues growth momentum in Q2

Healthy top and bottom line growth in the second quarter of 2010-11, its first quarter as a listed entity, has enabled top fashion retail brand ODEL to report characteristically strong results for the six months ending September 30.

ODEL CEO Otara Gunewardene

According to figures filed with the Colombo Stock Exchange, the Group achieved a pre-tax profit of Rs 165 million for the half year, an increase of 65 per cent over the corresponding six months of 2009-10.

Profit after tax improved by a robust 50 percent to Rs 100.6 million on a turnover of Rs 1.53 billion, which was up 55 percent, the Group said.

Pre and post tax profits for the three months ending September 30, 2010 reflected increases of 74 per cent and 72 per cent respectively over the preceding quarter.

The Group’s basic earnings per share for the period reviewed grew by 50 percent to 69 cents from 46 cents for the first half of the previous year.

The Group’s post tax profit for the six months reviewed was 71 percent of the Rs 141 million achieved for the full year in 2009-10.

ODEL founder and CEO Otara Gunewardene said they continue to witness significant same store growth and the addition of new stores has also contributed to this increased revenue.

“We are excited about the next quarter, which is seasonally our strongest, with Christmas sales usually contributing to a considerable percentage of annual sales. Two new stores that are expected to come on line before March 31, 2011 will also contribute to earnings,” she said.