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Friday, 5 August 2016 00:13 - - {{hitsCtrl.values.hits}}
Via its strategic shift towards focus on growth sectors, Expolanka Holdings PLC has achieved revenue growth of 7% year-on-year (YoY) amidst challenges, thereby increasing its revenue for the first quarter of the 2016/17 financial year (1Q 2016/17) to Rs. 14,956 million.
According to unaudited figures released to the Colombo Stock Exchange (CSE), driven by good performances in its Logistics and Leisure sectors (with Ventures beings its other area of operations), the company also improved its operating profit (which excludes other incomes and finance cost) by 20% YoY to Rs. 400 million, for the three months which ended on 30 June 2016.
As a result of non-cash write down in passive investments held at the Group level, the Group Profit Before Tax (PBT) for the quarter was Rs. 378 million – a decrease of 6% YoY. The profit attributed to the equity holders for the quarter too declined by 18% YoY to Rs. 182 million.
“It is noteworthy that the strategic focus on growth sectors has delivered a resilient financial performance in the first quarter of 2016/17 even amidst challenges,” Group CEO Hanif Yusoof said. “With ongoing developments such as the possible restoration of GSP Plus to the EU and other macro related developments, we intend to capitalize on the emerging growth opportunities, both locally as well as regionally.”
Expolanka Group, which now operates in the three spheres of Logistics, Leisure and Ventures, after divesting its non-core assets to focus greater on growth sectors, experienced top line growth in Logistics and Leisure during the first quarter of the 2016/17 financial year.
In Logistics, the Group increased its revenue by 5% YoY to Rs. 12,405 million for the quarter – a noteworthy performance considering the surge in air freight shipments in the corresponding quarter of the previous year. Both air and ocean freight recorded double digit volume growth while the Group’s core markets in India, Bangladesh and Sri Lanka performed well, fuelled by healthy volume growth in the US trade lane. Indonesia, Vietnam and Hong Kong (the Far East) recorded notable performances, thereby contributing to the overall sector growth. In addition, cost rationalization exercises and global procurement efforts conducted over the past few years have yielded results boosting bottom line growth of the sector.
The Leisure sector experienced Revenue growth of 64% YoY, improving its top line to Rs. Rs. 1,383 million with the Group’s outbound business travel operations recording positive results, building further on the growth that the sector showed throughout last year. Expolanka Holdings will continue to focus its attention towards growing the Leisure Sector.
The Ventures sector recorded a revenue of Rs. 1,167 million during the quarter. Non-recurring charge of Rs. 48 million related to restructuring cost affected the PBT of the segment.
Expolanka Holdings PLC has been in operation since 1978 and has a workforce of over 2800 employees. Headquartered in Colombo, Sri Lanka, the Group’s network spans more than 20 countries in Asia, Africa, USA and the Middle East.
