Aitken Spence shows strong comeback in 1Q via improved performance in June

• Core sectors maritime and freight logistics, strategic investments and services collectively record Rs. 513 m profit but COVID-hit tourism sector causes Rs. 1.5 b negative bottom line

Aitken Spence PLC said yesterday it has made a strong comeback in the month of June 2020 with the Group’s main sectors excluding tourism recording a growth in profits compared to June 2019, despite the adverse effects of the COVID-19 pandemic on overall economic activity. 

Chairman D.H.S. Jayawardena

Deputy Chairman/MD Dr. Parakrama Dissanayake

In a statement Aitken Spence said the three main sectors of the Group – maritime and freight logistics, strategic investments and services – collectively recorded a profit of Rs. 513 million during the quarter with the performance of these sectors improving steadily month on month.

The tourism sector of the Group both in Sri Lanka and overseas was significantly impacted due to the global pandemic and lockdown in the country during April and May 2020, resulting in the first quarter ending 30 June 2020 recording a loss of Rs. 1.5 billion compared to Rs. 216.7 million profit attributable to the shareholders in the previous year.

Resilience was seen in the Group’s diversified business portfolio and strategic direction, particularly, in integrated logistics, plantations, elevator agency, insurance and money transfer services that was commendable amidst unprecedented challenges.

The maritime and freight logistics sector performed remarkably under challenging conditions to deliver a profit-before-tax (PBT) of Rs. 459 million. Most companies within the maritime and freight logistics sector, operated continuously without a disruption during the quarter under review with increase in profits from the integrated logistics segment and airline cargo division of 58% and 71% respectively over the last year. Another outstanding sector performance was recorded by the elevator agency, insurance, money transfer segments in the services sector recording PBT of Rs. 96 million.

The strategic investments sector recorded a loss of Rs. 42.4 million for the three months ended 30th June 2020 due to foreign exchange translation losses arising from the strengthening of the rupee by nearly 2% during the quarter, although the plantations segment recorded an excellent performance with a growth in profit of more than 350% over the previous year and the power generation segment also making a noteworthy contribution to profits.  

The devastating effects of the COVID-19 and its aftermath that affected global tourism had also impacted our tourism sector’s results during the quarter resulting in a loss of Rs. 2.8 billion for the three months ended 30th June 2020. 

“Despite challenging times, we are pleased to be seen in the forefront of showcasing business resilience. I express my deep gratitude to our Chairman and Board of Directors for their guidance and strategic direction. I also wholeheartedly thank our Spensonians for their unstinted commitment and dedication especially during these turbulent times,” said Aitken Spence Deputy Chairman and Managing Director Dr. Parakrama Dissanayake.

“Aitken Spence is a company that has proven that our strength is in our diversity and we are confident that business will bounce back, and our efforts will continue to this end,” he added.

Listed in the Colombo Stock Exchange since 1983 and marking its 150th year milestone in 2018, Aitken Spence is a blue-chip conglomerate with a strong regional presence in hotels, travels, maritime, freight and logistic solutions, plantations, power generation, financial outsourcing, insurance, printing, apparel and other services.