Retail Holdings N.V. Announces First Half 2017 Results

WILLEMSTAD, Curaçao, Aug. 15, 2017 /PRNewswire/ -- Retail Holdings N.V. (Symbol: RHDGF) -- Retail Holdings N.V. ("Retail Holdings", together with its subsidiaries and affiliates, the "Company") announced today results for the first half of 2017.

• Consolidated revenue from continuing operations for the first six months of 2017 was up 10.2% from prior year, to $256.2 million, a record for this group of companies.
  
  
• All of the Company's operations reported revenue growth, with revenue in local currency increasing 26.0% in Singer Bangladesh, 4.8% in Singer India, and 13.5% in Singer Sri Lanka.
  
  
• Results from operating activities remained unchanged from prior year, a profit of $21.2 million, reflecting the growth in revenue and lower S&A expenses relative to revenue, offset by a decline in profit margin, particularly in Sri Lanka.
  
  
• The Company's net profit was $6.0 million for the first half of 2017, compared with a net profit of $7.2 million prior year; the decline is largely a result of higher net finance costs reflecting higher interest rates and additional borrowings in Sri Lanka.

Commenting on the 2017 first half results, Stephen H. Goodman, Retail Holdings' Chairman, President and CEO, noted, "I am encouraged by the Company's performance during the first half of 2017 despite the decline in net profit.  Performance in Sri Lanka and India were adversely impacted by the erosion in trading conditions and increased finance costs, due in Sri Lanka to higher import costs, higher VAT taxes and higher interest rates, and due in India to the disruptions caused by the surprise demonetization in the fall of 2016 and changes in the internal tax structure. Evidence suggests that both Singer Sri Lanka and Singer India gained market share during the first half of 2017, as competitors were less able to meet these challenges than were the Company's operations.  I believe that both Singer Sri Lanka and Singer India will show much improved results in the second half of 2017 as the recent initiatives to boost revenue, improve margins, reduce S&A expense and shrink the balance sheet, bear fruit.  Singer Bangladesh should continue to report strong results. 

"The Company continued to make strong progress in its strategic program to monetarize the underlying value of the Company's assets. Additional shares were sold in the public markets during the first half of 2017 for Singer Bangladesh, Singer India, and Singer Sri Lanka. I anticipate further placements in these markets in the second half of 2017.

"Retail Holdings paid a distribution of $2.00 per Share to Shareholders of record on May 5, 2017; a further distribution of $1.00 per Share will be paid to Shareholders of record on November 17, 2017. This bring the total distributions paid to Shareholders since inception of the program in 2007 to $18.75. The Company anticipates making further distributions in 2018 and later years.

"I encourage all shareholders to read the Retail Holdings complete Summary Semi-Annual Report for the period ended June 30, 2016, which is available at the Corporate/Investor Section of the Retail Holdings' website, www.retailholdings.com, or can be obtained by email, telephone or regular mail request."

About Retail Holdings

Retail Holdings N.V.is a holding company with one principal asset: a 54.1% equity interest in Sewko Holdings Limited ("Sewko"), the parent company of Singer Asia Limited, a distributor of consumer durable products through public subsidiaries in Bangladesh, India and Sri Lanka, with consumer credit and other financial services available to qualified customers. Retail Holdings N.V. has no operating activities other than those carried out through Sewko/Singer Asia. Additional financial and other information about Retail Holdings N.V. may be found at the Corporate/Investor section of the Company's website: www.retailholdings.com. Price quotations for the Company's shares are available on the "Pink Sheets" quotation service under the symbol "RHDGF".

For further information, please contact Amy Pappas at 1-914-241-3404.

INFORMATION CONTACT
Amy Pappas at 1-914-241-3404

SOURCE Retail Holdings N.V.

Related Links

http://www.retailholdings.com