Despite decreasing disposable earnings, Softlogic Group reported a 14 percent increase in sales in a difficult year.
The Group’s resilience and uncompromising atmosphere represent the 14 percent development in revenues, with a turnover of Rs. 75 billion per capita in the year and a moderating economy development combining acquisitions and company development, “said Chairman / General of the Softlogic Group Ashok Pathirage.
Because of its high price sensitivity resulting from challenging operating conditions and strong competition, operating profit margins remained flat with an only marginal increase.
The development of volumes was encouraging to reinforce the Group’s growth policy with 17% development of Gross Profit to Rs 28 billion.
Despite decreasing disposable earnings of 37.7 billion rs., the Retail sector reported a 6 percent development in Group sales of 50 percent of the size of the Group as we reinforced the Sector’s client value proposal.
In the reporting year, the main sector provided the group with operating income in the amount of Rs. 3.2 billion (38 percent) while the group with debt-funded debt improved the development.
Despite growing price regulation in healthcare, healthcare reported a 12% income development of Rs. 13.5 billion. Revenues from the sector have been increased by increased operational efforts and by the acquisition of Hemas Southern Hospital to a lesser extent in November 2018.
15 percent of personal healthcare capability is accounted for by Asiri Hospitals Group. Marginal pressures were exerted by intense competition in the industry and price awareness, which led to a 7% reduction in operating profit, which amounted to Rs 3.2 billion, representing 38% of the Group operating revenues.
The Sector contributed Rs. 1.8 billion to the Tax After Profit Group, the second-higher contribution of 61%.
The Group’s holding firm, Softlogic Capital PLC, achieved a powerful result mainly attributable to the results of Softlogic Insurance, as gross written premiums increased by 30% over 13%.
This supported a growth in the sector revenue of 23% as we expanded our distribution channels with the pioneering micro-insurance product Dialog which helps improve the market penetration in Life Insurance and allows for daily primes to be paid.
Financial sector operating margins decreased as expenditure increased as a result of growth. As a result of a transfer of one offset surplus to the sale of the general insurance company in 2017/18, PBT decreased as previous year figures were Rs. 798 million owing to modifications in contract liability.
The rise in PBT without the effect of this one-off profit is 15%. PAT was up 119% because the origin of the deferred tax assets of RS 2.4 billion increased sharply, resulting in a reversal in income tax of Rs 2 billion and development in PAT of 42% to Rs 3.2 billion.
Although margins were under pressure during this period of transition to the next business model, the information technology sector of the Group delivered 11 percent top-level growth to Rs 4.0 billion. During the year, operating profit decreased as GP margins decreased. Increased financing costs resulted in a reduction of 43 percent in PBT and 47 percent in PAT, respectively, to Rs 172 million and 135 million.
The operating environment in the automotive industry has become more challenging because rupee depreciation, cash margin requirements, and higher emission standards are exacerbating problems in a highly competitive market.
The sector recorded an increase of Rs. 3.1 billion in sales of 147%. It is worth noting that, compared to the operating losses of Rs 64 million last year, the industry generated a positive operating profit of Rs 170 million.
The cost of finance remains a problem because of the money margin requirement for loan letters, loss of return. The cash margin requirement has been removed afterward. In the reporting year losses following tax were decreased to Rs. 35 million from the prior year’s Rs. 178 million.