Despite the difficult operating climate common to most businesses, consolidated Softlogic Holdings PLC, group turnover significantly increased 11% to Rs. 59.4 billion during the first nine months of this financial year while quarterly revenue improved 14% to Rs. 22.2 billion.
Group’s efforts to restore consumer and business confidence during the period was augmented by expanding the international branded retail portfolio and upmarket stores at One Galle Face by Shangri La along with Odel Flagship department store, standing shoulder-to-shoulder with reputed marques thereby enhancing customer shopping experience manifold,” said Chairman Ashok Pathirage.
“In the same way, the healthcare sector, with the addition of Asiri’s 190-bed ultra-modern hospital in Kandy, will have an important role to play in the country’s healthcare serving the healthcare needs of the Central Province given its reach to the untapped regions of Northern and Eastern Provinces.”
Gross Profit grew 11% to Rs. 21.7 billion during the 1-3QFY20. The quarter reported a Gross Profit of Rs. 8.4 bn (up 15%) maintaining GP margins at 38% amidst Softlogic’s expansion drive whereby synergies are created.
Cumulative Group EBITDA improved 25% to near Rs. 10 bn while quarterly EBITDA increased 55% to Rs 4.2 billion primarily led by increasing activity levels, improving profit margins and cost discipline measures.
Operating profit for the cumulative period increased 12% amounting to Rs. 6.5 Bn while the quarterly operating profit grew 50% to Rs. 2.9 bn primarily supported by increased activities and cost controls which led to the operating profit margin improving from 10% in 3QFY19 to 13% in 3QFY20.
Despite the business environment operating uner a cloud, PBT for the three-month period was Rs. 305 mn as opposed to a loss of Rs. 237 mn in 3QFY19 with PAT registering an increase of Rs. 393 mn (a loss of Rs. 327 mn in 3QFY19).
Commenting on the Group Outlook he said: “Heavy investments in retail, healthcare and QSR have been made during the year despite the challenges of poor market sentiments, waning consumer demand and the shock of the Easter attacks.”
“This involves courageous leadership which foresees that with the new political equation the economy would be galvanized with tourism occupying a major thrust in the government’s agenda for ensuring that the country becomes a regional shopping destination. Notwithstanding this, the unforeseen Coronavirus would no doubt impact global tourism.”
“The psychological pandemic, nonetheless, would have to be controlled with a sense of urgency, Softlogic would be an immediate beneficiary of a resurgence in tourism which has in recent times proved encouraging for our leisure and retail sector. On the other hand, any pandemic of significance would result in the healthcare sector becoming indispensable for the country.”
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