Expolanka announces Q2 financials, credits business agility and core focus

Friday, 8 November 2019 00:18 - - {{hitsCtrl.values.hits}}

Presenting its results for the second quarter of the financial year yesterday, Expolanka PLC announced that it was on a sustainable growth path despite a global environment that continues to be challenging for business.

The company once more credited its performance to a focus on its core logistics business, generating revenue of Rs. 28.7 b (a 15% growth YoY) and a Gross Profit of Rs. 5.08 b (14% growth YoY) for the quarter. Expolanka’s logistics sector remained operationally stable in the second quarter.

The company noted that growth consistency was enabled by strong performance in the Ocean Freight sector, especially in the Transpacific and Far East market trade lanes, while it continued acquiring market share and enhancing the services provided to a widening customer portfolio. This sector generated a gross profit of Rs. 4.7 b, marking a YOY growth of 15%. The company announced that the warehouse sector has maintained consistent growth over the quarter by realigning to meet customer demands and service standards. It also highlighted the consolidation of its Air Freight business.

Apart from this, an important decision the logistics sector made during the quarter was to conclude the dispute between RCS Logistics Inc. by making a full and final payment of $ 6.75 million without the acceptance of liability. The above non-recurring cost impaired the financial performance for the quarter and for the year.

The leisure sector experienced a stable start to the period with a strong corporate travel segment, although Inbound and Leisure operations had slowed down during the quarter under review. Expolanka announced that it was repositioning the sector’s business operations, enhancing customer experience and its service portfolio, and practicing digital adoption to remain competitive. The investment sector, which includes the group’s export operations, contributed Rs. 837 m in revenue towards the group’s quarterly financials driven by IT services and corporate operations. The latter was able to implement vital cost efficiencies within the business over this period.

Expolanka noted that the business has drawn strength from its agile operational model and committed focus on its core business to meet the challenges posed by the external sector. These factors included price fluctuations, challenges in securing capacity and trade tensions between the US and China resulting in an uncertain geopolitical environment for global trade. This strategy marked notable success in procurement, an integral component of its business which remained a challenge as in previous quarters. By focusing on pre-emptive strategies, the group has been able to forestall potential issues and continue smooth operations.