Net profit improved to Rs 149.7 million from Rs. 96.7 million, boosted by investment income of Rs 122 million derived largely from the investment of proceeds from Odel’s December 2012 Rights Issue, pending the launch of retail projects.
Interim statements released by the company to the Colombo Stock Exchange indicate that the imposition of Value Added Tax (VAT) on sales in the final quarter of the preceding year continued to impact revenue growth in the review period.
The high costs of inputs such as electricity and personnel costs contributed to a 15.7 per cent increase in administrative expenses, pressuring profit margins, the company disclosed. The company said it expects these challenges to continue over the second half of the year.
However, aggressive treasury management utilising funds raised from the rights issue helped boost non-core income and generate healthy bottom line growth.
The company said it is currently awaiting approvals to break ground on an exciting new phase of retail space expansion that would drive sales growth.
The Board of Directors of Odel PLC has proposed an interim dividend of Cts. 12 per share.