ODEL reports 1H profit
ODEL has posted strong net profit growth in the six months ending
September 30, 2011.
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ODEL store in Wattala |
In results released to the Colombo Stock Exchange, ODEL PLC and its
subsidiaries reported profit after tax of Rs 122 million, an improvement
of 21 per cent over the first half of the previous year.
Group turnover grew 13 per cent to Rs 1.732 billion, bolstered by the
consolidation of revenue from new stores in Kiribathgoda (March 2011),
Kandy (May 2011) and Wattala, which opened in September, four days
before the end of the review period.
The Group now comprises of 16 stores and three more are expected to
be opened in the next Quarter (Q3) of the current financial year, the
company said. In addition, the Group intends to expand some of its
existing stores during the second half of the current financial year.
Same-store sales growth from the rest of the ODEL chain also contributed
to top line growth in the first half of the year.
"All of our new stores have lived up to their promise," ODEL founder
and CEO Otara Gunewardene said.
"In addition to the sales from the new stores we have been able to
leverage from more effective supply chain management and a reduction in
shrinkage to improve margins, resulting in a 17 per cent Year on Year
growth in Gross Profit.
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