Sri Lankan luxury retailer ODEL recently released its financials for the first three months of its financial year ending in 2011, where it recorded significant growth over the same period last year. The issuing of company results also coincided with ODEL shares beginning trading this week on the Colombo Stock Exchange, where it experienced a high of Rs. 38.50.
Showing an increase in sales of 62%, to Rs. 692 million, while the cost of sales rose far less, at just 55% or Rs. 427.8 million; the local 13-store chain also recorded a steep increase in profitability equaling 199%, to Rs. 37 million, over the same perod in the last financial year.
The interim report additionally noted a 77% hike in distribution costs, to Rs. 40.4 million; a 56% rise in administrative costs, to Rs. 160 million; and a 17% fall in finance costs, to Rs. 21.5 million.
Commenting on her company's performance, Chief Executive Otara Gunewardene suggested "higher tourist arrivals, efforts to make the brand more accessible to local consumers and a focused consolidation of business operations had contributed to the growth".
She also revealed; "Same store sales showed considerable growth year-on-year while the newly opened stores at Mount Lavinia, Moratuwa, Panadura and Maharagama performed above expectations. With the anticipated surge in tourist arrivals as well as a continued increase in local consumer demand, we are confident we will see strong growth going forward". |
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