Expolanka Holdings posts Rs. 668 m after tax profit in 1H

Expolanka Holdings PLC said yesterday it has sustained its consolidated NPAT for the first half of FY 2011/12 at Rs. 668 m, with a consolidated NPBT at Rs. 862 m.

These results have been achieved against the backdrop of the many challenges faced by the Group in the international trading sector with its global economic downturn, coupled with the regional, economic and political issues that prevailed in the Middle East, the company said in a statement.

Expolanka Holdings PLC Group CEO Hanif Yusoof said that within the transportation sector, the freight sub sector performed with stability over the second quarter despite the perceived negativity that was prevalent with the debt crisis.

“The GSA sub sector faced challenging months with the economic and political issues that were escalating in the USA, the EU and the ME. With increased competition in the market place and a drive towards increasing volumes, freight rates took a downward trend. However all efforts were made to remain competitive in pricing and thereby grow this sub sector.”

The transportation sector of the Group has managed to sustain its year to date bottom-line which contributed to PBT Rs. 839 m and PAT Rs. 690 m. The other three key sectors – international trading, manufacturing and strategic investments - contributed a PBT of Rs. 120 m and PAT of Rs. 100 m to the Group.

In tandem with growth in the tourism sector, the Expolanka Group is undergoing rapid transformation to meet renewed demands. This will facilitate the further growth of its travels segment. The freight sector will consolidate its position in the upcoming months while the GSA opts to be more competitive in its pricing and positioning.

These positive trends, along with increased revenue base and increased margins on the extended service in supply chain due to the investments in infrastructure, are expected to facilitate better performance in the upcoming period.

“Due to the domestic economic boom, we have geographically moved into setting up a strong presence within Sri Lanka. The company has its sights set on Hambantota, the soon-to-be commercial hub of the Southern Province. With the construction of the new harbour, the international airport and star class hotels, the city is set to attract large numbers of locals and foreign tourists. In fact Classic Travel and Expolanka Freight opened their branch offices in Hambantota during the second quarter,” Yusoof added.

Head of Marketing and Corporate Communications Paddy Weerasekera said that the backward integration into agriculture production would help the company to acquire adequate produce at the right time and at a competitive cost, and thereby enhance the sector’s efficiencies.

“We will, in addition, focus our energies on the value added products which are expected to contribute higher margins in the future. With the commissioning of the state-of-the-art manufacturing facility to manufacture the ‘Baraka’ range of black seed herbal products, we have also identified growth potential in this sector and have taken necessary steps to exploit these untapped gaps and markets,” Weerasekera added.

Furthermore, in line with the Government’s policy of enhancing, streamlining and providing quality education for Sri Lanka’s future generations, the Expolanka Group is committed to growth with investments in tertiary education.

The launch of ‘Expo Rail,’ the luxury rail passenger line is yet another transportation initiative the Group took during the second quarter. This service provides affordable luxury travel from Colombo to Kandy. This move is part of the company’s long term philosophy of providing transportation services to all levels of customers.

The Expolanka Group also launched the Expolanka-APIIT Entrepreneurship Incubation Programme on the psyche of the entrepreneur and the spirit to forge ahead with vision. This project aims to develop an incubator programme where students with entrepreneurship qualities will be provided the chance to develop innovative start-up companies that are geared for strong growth.

The company has also taken great strides in taking its CSR projects to higher levels. Although there is extensive improvement to the country’s medical sector, most of the medical consultation remains unaffordable to the underprivileged.

In order to primarily serve the less fortunate, Expolanka’s CSR arm works on building economical health care facilities. Its facility named as ‘EXPO MEDIX’ offers primary medical care to the residents of the areas it operates in. This non-profit centre treats patients on a cost basis through its presence in Mattakkuliya, Slave Island, Grandpass, Wattala and Kalutara.

Expolanka Holdings PLC – the holding company of the Expolanka Group – commenced operations in 1978. The company is listed in the Main Board of the Colombo Stock Exchange as a diversified conglomerate.

With diversified interests in transportation, international trading, manufacturing and strategic investments sectors, the Group, which has a global presence in over 12 countries and 38 cities, has 46 subsidiaries and joint venture companies.

Expolanka Holdings PLC posted a net profit of Rs. 1.3 billion in the year ended 31 March 2011.