Odel reports revenue growth of 13.5 % in first quarter

Odel PLC has reported sales of Rs 1,096 million for the first quarter of 2014-15, an increase of 13.5 per cent over the corresponding quarter of the previous year.

Gross profit for the three months ending 30th June 2014 amounted to Rs 449.5 million, a growth of 12%, the Group said in a filing with the Colombo Stock Exchange.

However, higher administrative costs mainly due to increased rent and employee costs together with increased finance costs impacted profitability. The bottom line was further impacted with a drop in other investment income in a low interest rate environment resulting in a marginal profit for the quarter.

In the quarter under review the company made an investment of Rs 800 million to purchase land adjoining its flagship store at Alexandra Place to further strengthen its retail footprint.