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| Friday, 5 March 2004 |
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Singer records highest revenue growth in 2003 Chairman, Singer (Sri Lanka), Hemaka Amarasuriya said that the present political situation and the announcement of the general elections have not had any impact their on customers so far. Speaking at the ceremony to announce their financial performance in 2003, he said that this situation might change towards the lead up to the elections. He said that they were expecting a business friendly political system in the future. "All political parties have promised this. However politicians often do not keep their promises and we are adopting a wait and see policy," he said often. Bringing down tariffs has affected their assembly plants dealing in electronics and refrigerators. "Due to this situation the company is implementing cost effective methods," he said. Their Jaffna branch had the best sales figures for refrigerators and 95 percent of Jaffna sales were on cash. Singer's business was driven in 2003 by its Consumer Electronics segment, which grew 44% over last year. Televisions, refrigerators and sewing machines contributed 85% of the Company's total turnover. Singer (Sri Lanka) recorded a 23% increase in net revenue, from Rs. 5.1 billion in 2002 to Rs. 6.2 billion in 2003 which was the company's highest ever revenue growth in its 127-year history. The Gross profit reached Rs. 2,046 million as against Rs. 1,671 million in the previous year, an increase of 22%, and net profit grew by 79% reaching Rs. 378 million compared with Rs. 211 million for 2002. "It has brought me immense pleasure in leading your Company in a year of great achievement," he said. Commenting on the Company's success in his annual review, Amarasuriya said that it was a time of strategic change with a shift in pricing policy to price in line with the market rather than at a premium as market leaders often want to do. While prices were right for the consumers to make "good buys", there was also a strong emphasis on customer care across the exclusive Singer network of 238 stores throughout the country. He attributes the success to the availability of products, easy access to markets, choice of models and brands, in-house consumer finance, outstanding customer care and sales professionalism. Singer's furniture segment made great strides during the year with the introduction of its own dedicated line of furniture stores called "Modern Homes". An immediate improvement in performance with good prospects for the future will make furniture Singer's third core business segment together with home appliances and financial services. Another 'first' for Singer in 2003 was the obtaining of ISO 9001-2000 accreditation for After Sales Service - the first company in appliances to gain such recognition and one of the first companies to be thus rewarded for after sales service. In terms of infrastructure, Singer signed up for a sophisticated new IT system with its business partner IFS. The new system will intranet sales and distribution into one domain. Sales will soon be on real time, enabling the Management to better monitor and respond to market trends. The Company also commissioned a 60,000 sq.ft distribution centre close to its Piliyandala factories which will considerably speed up getting merchandise to the field, whilst at the same time bringing all warehousing under one roof. With the consumer durables market in Sri Lanka rebounding strongly after several years of sluggishness, the future holds great promise for Singer as consumer confidence returns. |
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