3Q rebound at Expolanka but 9-month result down

Expolanka Holdings Plc has seen a rebound in its bottom line during the third quarter though its nine-month performance was down with two difficult quarters previously.  

The third quarter after tax profit was up 24.6% to Rs. 426 million but the nine-month figure was down 37% to Rs. 589.8 million. Pre-tax profit was up 32.6% to Rs. 574.2 million in 3Q but lower by 22% to Rs. 969.3 million for nine months. Profit attributable to equity holders of the parent was up by 22.7% to Rs. 336.5 million though the nine months performance was down 52.5% to Rs. 402 million. 

Group revenue for nine months was up 21.6% to Rs. 58.7 billion and for the 3Q it grew by 23% to Rs. 21.1 billion. In the second quarter Expolanka suffered a Rs. 89 million post-tax loss and in the 1Q post-tax profit was down by 7% to Rs. 253 million.

In its press statement on the latest results, Expolanka said revenue growth in 3Q was primarily driven by the performance of its logistics sector. 

During the quarter, Expolanka’s logistics sector contributed Rs. 20 billion towards group turnover, reflecting growth of 36% YoY, with the sector’s air and ocean freight businesses posting impressive growth of 38% and 24% respectively. Consequently, the logistics sector’s Gross Profits expanded by 42% YoY to Rs. 3.4 billion during the quarter and YTD Gross Profit of Rs. 8.6 billion, up by 19% YoY, despite continued pressure on margins. 

Efforts to improve procurement and introduce greater efficiency enabled improvements in profitability within the logistics sector despite higher freight rates prevailing during the quarter, leading to a PAT of Rs. 522 million during the quarter, reflecting growth of 25% YoY.

All key trade lanes performed up to expectation during the quarter with increased outbound volumes being recorded from the East Asian markets; while efforts to enhance South Asia-USA trade lanes are already showing positive results. Similarly, the Europe and Intra Asia trade lanes continue to augment the overall performance of the group by delivering consistent numbers.

Warehouse operations continued to show improvements, delivering sustainable earnings driven by a focus on building operating scale and efficiencies.

Similarly, Expolanka’s leisure sector continued to extend its strong performance over 3Q17, posting turnover of Rs. 274 million and gross profits of Rs. 246 million to conclude the quarter with a PAT of Rs. 40 million and YTD PAT of Rs. 148 million. Moving forward, the brands within the sector aim to maintain their focus on core operations complemented by a wide range of value added services. 

Meanwhile, the group’s investment sector, which includes the group’s perishable export operations, contributed a further Rs. 671 million towards group turnover.

The sector recorded a loss during the quarter primarily attributed to the cost of shared services provided by the corporate office, which functions as a strategic and support service centre to the group. 

Expolanka Holdings Plc has been in operation since 1978 and has a workforce of over 2,300 employees. Headquartered in Colombo, the group’s network spans 18 countries in Asia, Africa, the US and the Middle East.