Singer (Sri Lanka) PLC shifted gears when it came to the appearance and presentation of its 2008 Annual Report.
Gone was the old format and in its place is an Annual Report resembling a magazine with a cover picture of a brand manager in the company’s marketing division, representing all 1,143 Singer Group employees. Singer stated in the report that the cover concept, a glossy lifestyle magazine, reflects Singer’s status as Sri Lanka’s favourite brand.
In place of the usual glamour model or entertainment personality, the company said it featured the face of a Singer employee chosen at random ‘to represent the strength of our people.’ Singer Chairman Hemaka Amarasuriya stated that the global economic downturn of unprecedented magnitude which took the global business community by surprise, resulted in diminishing bilateral trade, a factor all institutions need to recognize and grapple with in the ensuing year. He added that Sri Lanka’s economy has yet to face the heat of the global meltdown and recorded a robust growth estimated at 6.1% last year. However, Mr. Amarasuriya said it did not flow through advantageously to consumer markets.
‘A fourth consecutive year of double digit inflation truly constricted the purchasing power of our average consumer to household essentials. Inevitably, a postponement of the decision to purchase consumer durables, particularly replacements, to a latter date was one of the options considered by consumers in balancing budgets to grapple with the harsh reality of continuing inflation on real householder incomes.’
Mr. Amarasuriya stated that both Singer Group and Company revenues recorded flat positions as a consequence of the above. ‘Though we enter 2009 with a cautious revenue forecast outlook, it is our expectation that the local business downturn will be of limited duration and consumer markets will step up buying patterns as the year unfolds.’
The company’s net group revenue was Rs.13.7 billion, almost in line with the previous year although net revenue decreased by 1% to Rs.13.4 billion from Rs.13.5 billion. Group net revenue grew by 17% in the first half of 2008 over the previous year. Gross profit of the Group for 2008 was Rs.5,244 million as against Rs.5,119 million in the previous year, an increase of 2.4%.
Absolute gross profit of the company in 2008 was Rs.4,874 million, marginally below Rs.4,887 million from the previous year. The gross margin percentage of the company increased from 36.1% to 36.5%. |
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