Odel posts 9-month net profit of Rs. 195 million
View(s):Fashion retailer Odel PLC has seen a slowdown in sales coupled with the impact on the value added tax (VAT) on business.
In a statement to the media, the company reported a net profit of Rs 195.7 million at the end of the third quarter of 2013-14 to 31st December 2013.
Odel’s revenue of Rs 3.4 billion for the period was down 2.5 per cent due to a slow-down in retail sales and the impact of the imposition of VAT on sales.
Administrative expenses rose by 17.8 per cent due to higher costs of premises and staff consequent to expansion of the retail chain. However, the company managed to restrict the rise in distribution expenses over the corresponding nine months of the previous year, the statement added.
Other income of Rs 181.3 million, made up principally of the investment of proceeds from Odel’s December 2012 rights issue combined with a 31 per cent reduction in finance costs, enabled the company to record profit before tax of Rs 211.8 million, down 12.4 per cent.
In the period under review, Odel refurbished and upgraded its Nugegoda store, re-designed and re-launched its store at the Bandaranaike International Airport (BIA) and opened two new stores — a ‘Luv SL’ store at Negombo, and the second largest Odel store in Sri Lanka, at K-Zone Ja-Ela. The company’s fifth Luv SL store opened in Galle on Friday.