Softlogic Holdings PLC recorded a strong consolidated revenue growth of 46% to Rs.52.6 Bn during 1HFY22 with the quarter registering a commendable growth of 29% to Rs.28.1 Bn.
Operating profit for the six-month period recorded a two-fold increase to Rs. 5.9 Bn while the quarter witnessed an increase of 41% to Rs.3.6 Bn overcoming numerous systemic challenges.
Retail sector emerged to be one of the top performers during the quarter amid supply-side challenges with the consequent lockdown and re-imposition of the import restrictions consequent to USD shortages in the market. The company has demonstrated its strength throughout the pandemic compensating Covid-19 related claims which exceeded Rs.500 Mn for the year.
Softlogic Finance, which returned to profitability in the quarter, has raised a total sum of Rs.5.64 Bn by way of Rights Issues and Subordinated debt. With the country’s heightened digitalization drive in the pandemic era, most companies had to fast track digitalization and automation for business continuation.
Gross Profit for the six-month period increased 43% to Rs.15.7 Bn while the quarter recorded a growth of 19% to Rs.8.5 Bn.
Distribution and administrative expenses increased 18% and 7% to Rs.1.6 Bn and Rs.8.7 Bn respectively during 1HFY22 while the quarter recorded cost increases of 1% and 8% to Rs.790 Mn and Rs.4 Bn respectively. Total operational expenses increased 8% to Rs.10.3 Bn during 1HFY22 while the quarter witnessed a 7% increase in operational expenses to Rs.5.1 Bn.
Cumulative Group EBITDA more than doubled to Rs. 7.8 Bn in 1HFY22 in comparison to Rs. 3.8 Bn in 1HFY21. Quarterly EBITDA rose 31% to Rs. 4.6 Bn.
Group profitability reported a strong rebound recording a PAT of Rs. 883 Mn for the cumulative period compared with a loss of Rs. 3.8 Bn in 1HFY21. A two-fold performance growth was recorded for the quarter as the PAT reached Rs. 971 Mn compared with a loss of Rs. 936 Mn in 2QFY21.
“With the reopening of the economy and vaccination drive reaching its potential, consumer confidence has witnessed an uptick in demand for Consumer Electronics, Fashion and Smartphones. It is heartening to note that tourism, and apparel exports, have seen steady progress which is an important factor in addressing the current shortfall of foreign exchange in the country,” an official from the company said. .
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