Richard Pieris records 9 months turnover of Rs 23 b
Group operating profit Rs 2.8 billion:
The Richard Pieris Group ended its first nine months with a strong
growth of 95% in Operating Profits of all its sectors other than the
plantation sector. The nine months ended 31st December 2011 evidenced a
steady growth of the Group’s Retail, Plastic and Rubber Sectors and the
Group is well poised to achieve its targets during the year with plans
underway for an aggressive expansion of its large format super market
retail outlets and diversification plans into the financial services
sector.
The Group recorded a Turnover of Rs 8.6 bn and an Operating Profit of
Rs 1 bn for the three months ended 31st December 2011.
The Turnover for the nine months ended December 2011 was Rs 23.5
billion resulting in a Group Operating Profit of Rs 2.8 billion and a
Profit before Tax of Rs 2.3 billion.
During the last 12 months Group Debt levels were around Rs 4.4
billion and despite significant new investment the Group has managed its
Debt levels without a significant increase and the overall Gearing Ratio
which has reduced from 40% to 32% during this period and as at 31st
December 2011 the Group Debt was Rs 3.6 billion.
The Retail Sector continued its steady performance with a turnover of
Rs 10.4 billion and an operating profit of Rs1.2 billion during the nine
months ended 31st December 2011.
The turnover of this segment grew by 30% when compared to the
previous year with an increase of 90% in the Operating Profit which
includes a part of the Capital Gain resulting from the Richard Pieris
Distributor’s investment in (Group’s disposal of its associate
undertaking) - Asian Alliance Insurance PLC.
During the period under review the sector opened yet another large
format retail outlet in the town of Kalutara and two showrooms and is
aggressively expanding its operations.
The festive season was very busy for the retail sector with many
promotional activities carried out which were immensely popular with the
patrons.
The Plastics Sector recorded a Turnover of Rs 3.6 billion and an
Operating Profit of Rs 461 m for the nine months ended 31st December
2011.
The Turnover was 29% higher than the corresponding period of the
previous year and the Operating Profit increased by 34% compared to last
year. During the quarter the sector ventured into a new line of business
with the commencement of manufacture and distribution of furniture to
the domestic market with a focus on domestic and office furniture.
A new plant was set up for this purpose in Morentuduwa. Further
market penetration was successfully carried out in water tank and
mattress sales. |