Softlogic Group’s FY22 Gross Profit up 52% to Rs. 39 bn | Daily News

Softlogic Group’s FY22 Gross Profit up 52% to Rs. 39 bn

Ashok Pathirage
Ashok Pathirage

Softlogic Group’s financial performance for financial year 2022 reflects strong results across all business verticals amidst heightened market volatility and economic woes.

Consolidated Annual Revenue surged reaching Rs. 111.2 billion, up 35 %, Softlogic Holdings PLC for the financial year ended March 31, 2022. Consolidated Gross Profit for FY22 improved 52% to Rs. 39 billion while Group EBITDA recorded a rise of 98% to Rs. 19.7 billion during FY22. This was primarily resulting from increased top line and stringent cost discipline, according to Softlogic Holdings PLC for the financial year ended March 31, 2022.

The Group witnessed exchange losses at Retail, Leisure and IT sectors during 4QFY22 due to the depreciation of the rupee. Net finance costs for the year, excluding exchange losses and gains, declined 13% to Rs. 4.9 billion due to the low interest rate regime.

Group PBT for the year recorded a near two-fold increase to Rs. 3 billion, compared to a loss of Rs. 3.2 billion in FY21.

Group PAT for FY22 achieved a 126% growth in profitability to Rs. 880 million in comparison to a loss of Rs. 3.4 billion in FY21. Revenue for Healthcare Services witnessed a 41% increase to Rs. 22.4 billion.

Sector recorded an EBITDA growth of 75% to Rs. 7.2 billion in FY22 while closing the year with a PAT of Rs. 3.8 billion (up 117%). Retail sector recorded a revenue growth of 33% to Rs. 57.8 billion during FY22 while EBITDA saw an increase of 274% to Rs. 7.4 billion.

Softlogic Life Insurance achieved a growth of 25% to Rs. 21 billion in FY22. GWP growth has been underpinned by steady demand for life and health products. The company achieved a PAT of Rs. 2.2 billion. Softlogic Finance witnessed a growth of 147% in Net Interest Income to Rs. 1.4 billion during FY22. Total Deposits rose 7% to touch Rs. 15.6 Bn. The Financial Services sector achieved a topline growth of 27% to Rs. 23 billion in FY22 while PAT registered a growth of 170% to Rs. 1.3 billion for the year. “With the interlude of the current economic turmoil navigating through these uncertain times, especially for the retail sector, which is import-reliant, must be considered with a thinking that is outside-the-box,” Softlogic Group Chairman, Ashok Pathirage. The duty barriers and increase in taxes which are a disincentive to consumers has to be reckoned with due to diminishing purchasing power. As we focus on premium and luxury brands, consumer behavior generally runs inversely to normal demand and supply pricing.

The report said that with more brand awareness, the trade-off between shrinking consumer income and maintaining brand consciousness would be a challenge. To overcome this, local brands are being developed creatively to substitute for the demand for imported brands.

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