ODEL sales up 15% to Rs 3.8 billion in 2011-12
ODEL has posted sales of Rs 3.8 billion and profit before tax of Rs
264 million for the 12 months ending March 31 ,2012 a year of
significant expansion-related capital expenditure for Sri Lanka’s
upmarket fashion retail brand.
In income statements filed with the Colombo Stock Exchange, ODEL PLC
and its subsidiaries reported Group turnover growth of 15 percent over
FY 2010-11, resulting in a net profit of Rs 202 million.
On the basis of these results, the Board of Directors of ODEL has
declared a final dividend of 25 cents per share for the year. Together
with an interim dividend paid earlier in the year,this amounts to a
distribution of 50 cents per share for 2011-12.
Contributions to turnover were enhanced by the consolidation of
revenue from four new stores opened in the year under review, and sales
generated by expansions of existing stores, ODEL founder and CEO Otara
Gunewardene said.
“Our expanded reach and same-store growth helped the top line,” she
said. “All of the new stores are performing to targets, and will
contribute to bottom line growth as they mature.”
ODEL opened new stores in Kandy (May 2011), and Wattala (September
2011) and launched two new-concept ‘Luv SL’ stores in Colombo and Kandy
in FY 2011-12. An exclusive Men’s store was also set up in Kandy in the
review period.
These investments in expansion resulted in the Group incurring higher
finance expenses, which grew 64 percent to Rs 110 million as well as an
increase in administration costs.
The impact of these increases was partly offset by the lower rate of
taxation applicable for the year reviewed. Income tax for the 12 months
reduced by 57 percent to Rs 62.4 million.
The ODEL Group now comprises of 16 stores at Alexandra Place,
Kohuwala, Maharagama, Mount Lavinia, Moratuwa, Panadura, Nugegoda
(Warehouse), Dickman’s Road, Ja-ela, Majestic City, Crescat (Backstage),
Battaramulla, Kiribathgoda, Kandy, Wattala and at the Bandaranaike
International Airport, and two Luv SL stores at the Dutch Hospital
complex in Colombo and at Queens Hotel, Kandy. |