Singer revenue reaches all time high

PROFITS: Singer Sri Lanka has recorded an outstanding growth in revenue; market expansion and market share in a somewhat slow growth environment.

Net revenue grew by 26% to an all time high of Rs. 10.8 billion, more than doubling over the last 3 years. Group revenue in the previous year was Rs. 8.6 billion.

Singer Sri Lanka Chairman Hemaka Amarasuriya said that the bulk of this growth came out of price related inflation arising from indirect tax adjustments and increase in raw materials from bi-products of petroleum for one of Singer's major Categories, Refrigerators.

"We are consciously aware that rising prices may slow down volume growth," he said on Wednesday.

With the advent of CDMA technology fixed access wireless sector grew by 73%. In the audio/video sector customers shifted from VCD's to obtain multiple benefits of DVD technology.

"Growth in White Goods sector somewhat slowed down due to the levy of a multiple array of taxes including increased VAT, Excise Duty and Cess, opening up grey markets for the non-traditional sector which led to Government losing out on the anticipated revenue from new taxes.

Refrigerator penetration is still below 40% and this is fast becoming the aspired product among young households where both spouses are employed."

Referring to Sri Lanka's economy, Amarasuriya said the Government's income tax policy, driven by large real increases in both direct and indirect taxes may unsettle business growth.

"As one of Sri Lanka's well known heritage brands, we will develop Sisil as a brand icon," he said.

The introduction of an exclusive channel for Furniture under the brand 'Modern Homes' resulted in rapid growth of this segment in urban markets.

The growth of the Agro sector was fuelled by strong demand for Water Pumps and allied products. (AGP)