The Richard Pieris Group has ended its 1st quarter on a strong note reporting a Group Revenue of Rs.10.3 billion and a PBT of Rs.771 million. The reported revenue and PBT signifies a growth of 17 percent and 22 percent respectively over and above the previous year.
The three months ended 30th June 2015 resulted in a very robust performance in all sectors of the Group except the plantations sector which was hampered by a drop in prices of all commodities including tea, rubber and palm oil due to external factors. The reported profits represent business profits, and do not include any gains of a capital nature.
The retail sector of the Group comprises of Arpico Super centres and the network of Arpico outlets scattered island wide. “The first quarter of the financial year 2015/ 16 started off vibrantly for the retail sector with the “Avurudu siritha campaign” which resulted in a lot of hype leading up to the Sinhala and Tamil New Year. The focus on marketing activities continued throughout the quarter along with the popular “Top tips campaign”.
The plastics and distribution sector continued its success of 2014/15 and reported a growth of 90 percent in its reported operating profit for the quarter under review over and above the 1st quarter results of the previous year.
The plantation sector of the Group experienced a very challenging 1st quarter facing many adverse factors.
The Richard Pieris Group possesses 3 of the largest plantation companies in the country with diverse crops which includes high grown, mid grown and low grown tea, rubber, oil palm, coconut, cinnamon, cardamom, rambutan and other crops contributing to more than 15 percent of Group Revenue.
The drop in selling prices continues to be the main challenge faced by the sector. On a positive note there was an increase in the production of coconuts and oil palm with the latter gaining better prices when compared to Q1 of the previous year. During the period under review the tyre sector recorded a steady growth of 44 percent in its operating profits over the corresponding period of the previous year.
Rubber manufacturing sector continued to prosper during the 1st quarter of 2015/16 in the back drop of a very successful 2014/15.
Though the Group is focused in its traditional businesses, diversification into financial services was successfully ventured over the past few years. At present Richard Pieris Group consists of its own life insurance, stock broking, fund management and a finance company. Richard Pieris Finance Limited (RPFL) continued to expand its business base and is gaining momentum in a highly competitive industry. Arpico Insurance PLC, which is now on its 4th year of operations continued to establish its position in the industry.
With a solid 1Q performance the Group is well geared to face up to the challenges for the rest of the year and a spokesman for the company said that the outlook for the rest of the financial year is promising.
Richard Pieris & Co. PLC is a diversified business conglomerate with a rich history of 83 years. Its flagship brand “Arpico” is one of the most powerful local household brands in Sri Lanka for over 50 years, serving the community with a diverse range of products across many sectors such as manufacturing, plantations, financial services, exports, FMCG, construction, logistics & retail.