Regnis to bring in new machinery, increase fridge offerings
View(s):Regnis Lanka PLC (Regnis), which has had a great run after the company changed to environmental friendly R 600 gas (use of isobutane as a gas for refrigeration systems) refrigerators, will spruce up its machinery by the year end in a bid to increase capacity, officials said. ”We changed the manufacturing process at the start of this year and will bring down new machinery to enhance capacity,” Asoka Peiris, Chairman Regins told the Business Times. Group revenue expanded by 24 per cent (yoy) to reach Rs. 1.14 billion in 2Q16 from Rs.9.19 million reported in 2Q15. The revenue consists of three major segments – refrigerators, washing machines and other white goods.
Regnis’ refrigerator segment recorded a growth of 27.5 per cent during 2Q16 to reach Rs. 15.4 million against Rs. 717.9 million recorded last year while its washing machine segment grew 7.6 per cent to Rs. 208.9 from Rs. 194 million. The ‘Other’ segment saw a growth of 44.5 per cent to Rs. 11.3 million from Rs. 7.8 million last year. According to Mr. Peiris this growth in revenue is due to the increase in demand seen in refrigerators and washing machines. Mr. Peiris added that Regnis plans to introduce a new refrigerator offering this year.
The company’s gross profit improved by 5 per cent at the group level to Rs. 122.5 million during 2Q16 from Rs 117.1 million reported during last year, Regnis’ gross profit margin reduced to 10.8 per cent during the quarter compared to 12.7 per cent recorded last year. Finance cost of the group decreased by 32 per cent yoy to Rs. 1.4 million during 2Q16 as against Rs. 2 million reported in 1Q15. Due to the increase in sales observed in washing machines the company utilised its own funds to finance the increase its production which has resulted in a decrease in finance cost, Mr. Peiris said.