Sales in the first half of the year grew 13 percent to 1.7 billion rupees. At company level net profit fell five percent to 88 million rupees from the previous year.
Basic earnings per share rose to 84 cents from 74 cents and the firm approved an interim dividend of 25 cents per share, which a statement said translates to a dividend payout of 29.6 percent.
The company did not give a breakdown of profits for the June 2011 quarter.
In the first half the accounts showed sharp increases in finance and distribution expenses. Finance costs rose 53 percent to 45 million rupees while distribution costs went up 30 percent to 106 million rupees.
"Group turnover (was) bolstered by the consolidation of revenue from new stores in Kiribathgoda (March 2011), Kandy (May 2011) and Wattala, which opened in September, four days before the end of the review period," the company statement said.
"The group now comprises of 16 stores and three more are expected to be opened in the next quarter of the current financial year," the company said.
In addition, the group intends to expand some of its existing stores during the second half of the current financial year.
"Same-store sales growth from the rest of the Odel chain also contributed to top line growth in the first half of the year," it said.
“All of our new stores have lived up to their promise,” Odel founder and chief executive Otara Gunewardene said.
"In addition to the sales from the new stores we have been able to leverage from more effective supply chain management and a reduction in shrinkage to improve margins, resulting in a 17 percent year-on-year growth in gross profit.
"We have invested in improving infrastructure and knowledge capital during the period under review, which will benefit and support the growth of the business in the months ahead.”
Since its listing on the Colombo bourse in July 2010, ODEL has opened four new standalone stores in the suburbs of Battaramulla, Kiribathgoda, and Wattala and also in Kandy in the central hills.
A note to the accounts said Otone (Pvt) Ltd, a fully owned subsidiary of Odel, has been liquidated during the period but its business operation were continuing under the parent firm.
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