Thursday, 13 February 2014 08:38
Fashion retailer Odel PLC has reported a net profit of Rs 195.7 million at the end of the third quarter of 2013-14.
Releasing its income statements for the nine months ending 31st December 2013, Odel reported revenue of Rs 3.4 billion for the period, down 2.5 per cent due to a slow-down in retail sales and the impact of the imposition of Value Added Tax on sales.
Administrative expenses increased by 17.8 per cent due to higher costs of premises and staff consequent to expansion of the retail chain. However, the company managed to restrict the rise in distribution expenses over the corresponding nine months of the previous year.
Other Income of Rs 181.3 million, made up principally of the investment of proceeds from Odel’s December 2012 Rights Issue combined with a 31 per cent reduction in finance costs, enabled the company to record profit before tax of Rs 211.8 million, down 12.4 per cent.
In the period under review, Odel refurbished and upgraded its Nugegoda store, re-designed and re-launched its store at the Bandaranaike International Airport (BIA) and opened two new stores -- a ‘Luv SL’ store at Negombo, and the second largest Odel store in Sri Lanka, at K-Zone Ja-Ela. The company’s fifth Luv SL store opens in Galle on 14th February 2014.