Sri Lanka’s Softlogic Holdings records pre-tax profit in Q1 from losses posted a year ago
Sri Lanka’s Softlogic Holdings Plc has announced robust business performance in 1Q FY22 achieving a consolidated topline of Rs. 24.5 billion, which is a 73% increase from a year earlier.
Quarterly operating profit was Rs. 2.3 billion as against a loss of Rs. 593 million in 1Q of FY20. Quarterly PBT recorded an increase to Rs. 163 million as opposed to a loss of Rs. 2.9 billion in 1QFY20, the Daily FT has stated.
Operational expenses rose 9% to Rs. 5.1 billion whilst Distribution and Administration expenses increased 41% and 5% to Rs. 805 million and Rs. 4.3 billion respectively in 1Q FY22 as a result of the increased investment in safety equipment as well as continued capital expansions in the retail sector and the Group has achieved an EBITDA of Rs. 3.2 billion for the quarter as against Rs. 303 million a year ago with an EBITDA margin of 13%, the news report has stated.
The top contributors to Group revenue were Retail (55%), Healthcare Services (20%) and Financial Services (19%) while the IT sector made up 5% of Group topline, the news report added.
“These results were achieved against the backdrop of so many external challenges. Yet, the Group’s performance fortuitously rebounded to unlock market potential in terms of unprecedented revenue growth despite the massive human challenges faced by consumers culminating in successive lockdowns amidst a more virulent pandemic tearing through cities and towns,” Softlogic Holdings Plc Chairman Ashok Pathirage has been quoted as saying.
The profits recorded by Sri Lanka’s Softlogic after recording losses an year ago is a clear indication of the overall growth momentum in the country while facing challenges posed by the global Covid 19 pandemic. With Sri Lanka’s key economic sectors showing a positive growth momentum and an ongoing development programme have further boosted the country’s attractiveness as a business/investment opportunity in the South Asian region. The country’s geographical positioning in the Indian Ocean and the trade agreements and concessions enjoyed by Sri Lanka have added to this package.
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