Sri Lanka’s Softlogic Holdings posts ‘spectacular’ growth in 3Q, FY22 nine months
Softlogic Holdings PLC has stated that it has recorded a “spectacular” growth amidst challenging times for the quarter ended 31 December 2021 and first nine months of FY22.
Due to increased revenues and cost discipline, cumulative Group EBITDA has almost doubled to Rs. 14. 3 billion (up 91%) while the quarter witnessed a 76% growth in EBITDA to Rs. 6.6 billion, according to a release by the company.
Operating profit for the cumulative period has reportedly recorded a 139% growth to Rs. 11.4 billion while the quarterly operating profit increased 97% to Rs. 5.6 billion.
Cumulative PBT (Profit before tax) has recorded more than a two-fold increase to Rs. 4.8 billion, compared to a loss of Rs. 2.8 billion in 1-3QFY21. The quarter PBT grew by 224% to Rs. 3.2 billion.
Also, PAT (Profit after tax) for the nine months ending December 2021 has achieved a profitability of Rs. 3.1 billion in comparison to a Rs. 3 billion loss. The quarter has recorded a remarkable increase of 184% to Rs. 2.2 billion.
PAT for the nine months ending December 2021 has achieved a two-fold recovery in profitability to Rs. 3.1 billion in comparison to a loss of Rs. 3 billion in 1-3QFY22. The quarter has recorded a remarkable increase of 184% to Rs. 2.2 billion.
Softlogic Holdings Chairman Ashok Pathirage has been quoted as saying that the Group strategy became clearer as pieces of the puzzle fell into place providing more opportunities in the retail sector with repricing and better margins coupled with stronger demand due to the collective uncertainty followed by unprecedented growth in the financial services, particularly insurance, and healthcare sector amid the extraordinary economic and systemic challenges.
“Early recovery is also seen across the non-core leisure sector with a resumption in tourist activities witnessed in recent times, which is very encouraging not only from a perspective of garnering foreign exchange but also in running the engine of tourism to avoid the adverse effects of inertia felt across the industry,” Pathirage has further stated.
Many private sector companies in Sri Lanka posted growth rates as well as profits despite facing challenges posed by the Covid 19 pandemic. This is indicative of the strength and growth of the country’s private sector as well as the resilience and expansion of the overall economy. With Sri Lanka’s ongoing development programme and the positioning of the country as an emerging business destination in the South Asian region, there is an overall expansion in the country’s key economic sectors. Also, Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as concessions enjoyed by the country have helped boost the opportunities in the country. Foreign businesses/investors while exploring opportunities in the country could also look at forming partnerships or joint ventures with local businesses.
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