The Group’s results in the first half were impressive considering that they were achieved despite a volatile economy and negative consumer sentiments following the sharp rupee devaluation and sharp increases in interest rates, electricity costs, and fuel prices.
In his Chief Executive’s Review, Singer Sri Lanka Group CEO, Mr. Asoka Pieris noted that the increase in interest rates was "a major concern to all in the business sector." Indeed, the Average Weighted Prime Lending Rate had soared dramatically from 9.4% a year ago to 13.8%. He pointed to the lower taxes in the current year as a key factor in the improvement of after-tax profits for both the Group as well as the Company.
One of the continuing factors for the Group’s consistent success is its position as the country’s leader in consumer durable retailing. It continued to consolidate this position in the first half of the financial year, with impressive growth in a number of product categories. For example, sales of Microwaves increased by 510% compared to the same period of the previous year, while sales of Irons rose by 141%. Other product categories which enjoyed significant growth were Refrigerators (27%), Domestic and Artisan Sewing Machines (16%), Fans (59%), Air Conditioners (34%), Kitchen Appliances (42%), Rice Cookers (99%), Water Pumps (29%), and Bicycles (41%). True to its commitment to raising the living standards of Sri Lankans island-wide, Singer Sri Lanka was successful in launching a number of new product lines and models with high growth in categories such as Cameras, Mobile Phones, Water Purifiers, Sprayers, Induction Cookers, Gas Cylinders, Air Coolers, and Blu Ray players.
Singer Sri Lanka offers its customers the widest selection of brands in these product categories and others, reflecting its commitment to a multi-brand marketing strategy. This value proposition, combined with the most extensive retail network in Sri Lanka, gives customers unrivalled quality, convenience, and choice. Numbering over 365 stores island-wide, the Group’s retail network is backed up by the country’s widest-ranging service network. Singer customers all over the country enjoy the peace-of-mind that comes from knowing that their purchases are backed up by the industry’s best after-sales service.
The Group’s outstanding performance has been built upon these unbeatable value propositions, as well as the belief that its sustained success is tied to the relationships it has forged with its customers. As it looks forward to scaling new heights in the second half of the financial year, the Singer Group has renewed its commitment to offering its customers more vibrant lifestyles by continually enhancing its product and service offerings.