ODEL posts strong 9month growth on booming sales

Pretax profit up 61% to Rs 287 million, turnover grows 42% to Rs 2.49 billion

Consistent growth in sales across the chain and the expected seasonal spike in December 2010 have combined to generate robust nine‐month fiscal results for ODEL, Sri Lanka’s only public quoted fashion retailer.

In results released to the Colombo Stock Exchange this week, the Group said it had posted pre‐tax profit of Rs 287 million for the nine months ending 31st December 2010, reflecting a growth of 61 per cent over the corresponding period of last year.

Profit after tax for the period topped Rs 176 million, up 43 per cent YoY, while turnover was up 42 per cent to Rs 2.49 billion, the filing said.

The nine months reviewed encompasses two quarters as a public listed company, consequent to ODEL’s milestone initial public offer of July 2010.

Pre and post tax profits for the three months ending 31st December 2010, traditionally one of the strongest quarters on account of the festive season, reflected increases of 56 per cent and 35 per cent respectively over the third quarter of 2009‐10.

The Group’s basic earnings per share for the full nine months grew by 43 per cent to Rs 1.29 cents from 90 cents for the first three quarters of the previous year.

Commenting on these figures, ODEL founder and CEO Otara Gunewardene said: “The ODEL formula of being at the leading edge of fashion, combined with the unique shopping experience we provide, continues to underpin growth. Expansion of the store network has also contributed significantly to our figures together with strong same store growth. We are confident of seeing this positive trend continue with the increase in tourism and planned development of the country.”

Two new ODEL stores expected to come on line before 31st March 2011 will take the ODEL store network in Sri Lanka to 15.

ODEL has declared an interim dividend of 25 cents per share in respect of the year 2010/2011 based on the current performance of the group. The ODEL share was offered at Rs 15 at the company’s IPO of 16.7 million ordinary shares, and commenced trading on the Colombo Stock Exchange on 4th August. The share was trading at Rs 46 as at 20th January 2011, up 206 per cent from its issue price.

The ODEL chain now comprises of stores at Alexandra Place, Maharagama, Kohuwala, Mount Lavinia, Moratuwa, Panadura, Nugegoda (Warehouse), Dickman’s Road, Ja‐ela, Majestic City, Crescat (Backstage), Battaramulla and at the Bandaranaike International Airport.