Singer aims high with optimism for the future

The right tones

• The Company Gross Profit of Rs 4,887 million for 2007 registered a 13% increase over the previous year, and Company Revenue grew by 12%.
  
• Several strategic gains - The masterstroke was the clinching of the coveted national distributorship for Samsung, the leading global electronics brand; Another enviable gain was the ‘acquisition’ of Hayleys’ consumer products channel which underpinned progression towards a comprehensive expansion of the Company’s retail presence throughout the island; the introduction of the Nokia sales agency
  
• The first time Singer Mega achieved sales of over Rs 1 billion, a 32% increase over the previous year. Five of the nine Singer Mega stores achieved sales of over Rs 100 million
  
• Modern Homes, the specialised furniture retail arm of Singer offering both local and imported goods, showed a 23% increase in sales
  
• Singer Finance registered a net profit of Rs 19 million despite increase in tax rate from 15% to 35%.

A fervent determination to believe in the Sri Lankan dream despite present market conditions saw Singer (Sri Lanka) invest for the future, according to the review of its financial results for 2007.

The Company Gross Profit of Rs 4,887 million for 2007 registered a 13% increase over the previous year, and Company Revenue grew by 12%. However macro-economic factors depleted Net Profit of Rs 310.6 million which was 27.4% lower than the previous year. Business growth saw investment in human resource (an increase of nearly 10%) and infrastructure improvement by way of renovation and expansion of the sales distribution network. Macro-economic factors which hindered growth included double digit inflation and a continuingly depreciating rupee, increase in fuel costs and import tariffs, high interest rates and the unstable security situation (which in particular meant that many of the markets in the North and East could not perform to full potential).

Despite a lower Net Profit than the previous year, the Company made several strategic gains. The masterstroke was the clinching of the coveted national distributorship for Samsung, the leading global electronics brand. Another enviable gain was the ‘acquisition’ of Hayleys’ consumer products channel which underpinned progression towards a comprehensive expansion of the Company’s retail presence throughout the island. Similarly the introduction of the Nokia sales agency immensely added to brand stature.

Says Singer (Sri Lanka) Chairman Hemaka Amarasuriya: ‘Our aim in the last financial year was to retain the Company’s position as a national retailing icon with consumer-centricity as our focal point.’ Indeed with a multi-brand strategy encompassing global names such as Samsung Whirlpool, Philips, Hitachi, Moulinex, Rowenta, Panasonic, Nokia, Toshiba and more, Singer (Sri Lanka) serves a customer base of over 4 million households.

Focus also shifted in the year under review from brand and category management to channel management. The company built on the strengths of its retail channels – Singer Plus, Singer Mega, Sisil World and Modern Homes along with trade and institutional channels.

In 2007, for the first time Singer Mega achieved sales of over Rs 1 billion, a 32% increase over the previous year. Five of the nine Singer Mega stores achieved sales of over Rs 100 million. Singer Mega is a unique Singer retail channel by way of department stores offering the Company’s products as well as products and services of other leading brands inviting the customer to an exceptional shopping experience of comfort and convenience.

Modern Homes, the specialised furniture retail arm of Singer offering both local and imported goods, showed a 23% increase in sales during the year under review.

Singer Finance registered a net profit of Rs 19 million despite increase in tax rate from 15% to 35%. Singer Finance is a Central Bank registered finance company which offers hire purchase facilities to employees of selected companies to enable them to purchase consumer durables, hire purchase and lease finance for the purchase of private and commercial vehicles and also accepts deposits.

Together with the Company’s multi-brand strategy, Singer Mega, Modern Homes and Singer Finance have changed to face of Singer for millions of households in Sri Lanka: where once the Company represented the sewing machine, it is now the retailer who cares enough to offer an extensive range of durable goods at affordable prices and so offer the Sri Lankan citizen a more comfortable living.

Singer has been in Sri Lanka since 1877 when the first Singer sewing machine went on sale in a Colombo store. Today, Singer (Sri Lanka) is a large, diversified company with unmatched presence throughout Sri Lanka. It remains a member of the worldwide franchise of Singer.

Beginning with the sewing machine, Singer’s product portfolio has diversified to encompass a highly successful multi-brand strategy combining products of top world marques like Hitachi, Whirlpool, Panasonic, Samsung, Phillips, Prestige, Moulinex, Rowenta, TCL, Tefal, HP and Honda, with the company’s own products, across a range of household, industrial and financial categories.

What is unique about Singer (Sri Lanka) is that its customer base is not confined to the urban group, but that it has rather taken its products and services to every part of the island in a bid to make the life of the average Sri Lankan more comfortable.

Singer (Sri Lanka) received a second consecutive listing as Most Powerful Brand in the country and the SLIM/A C Nielsen Power of the People Award as the Most Popular Brand and the Most Popular Consumer Durable Brand. Further, Singer (Sri Lanka) has been voted by LMD as one of the top twenty companies in the country for over 10 years. The annual Superbrands poll saw Singer (Sri Lanka) comfortably in the lead in 2005 and 2006. In 2005 and 2006, the Ceylon Chamber of Commerce adjudged Singer (Sri Lanka) among the Ten Best Corporate Citizens.