Expolanka Holdings reaches Rs. 50 b turnover milestone; posts Rs. 1.67 b PBT

The Expolanka Group reached an annual turnover of Rs. 50 billion for the first time, recording a 41% year-on-year growth propelled by a 64% growth in the freight and logistics sector.

Expolanka Holdings PLC sustained its consolidated net profit after tax for the FY 2012/13 at Rs. 1.28 billion, with a consolidated net profit before tax at Rs. 1.67 billion. The Q4 recorded a year-on-year growth of 38% in top line and 16% growth in gross profit.

The freight and logistics sector recorded a Rs. 1.18 billion profit after tax which was an increase of 6.6% for FY 2012/13.

The other three key sectors – travel and leisure, international trading and manufacturing, and, investments and services in total contributed a Rs. 101 million profit after tax to the group.

“The group’s year-end results reflect the challenges that we continue to face in a volatile global macro-economic environment,” Expolanka Holdings Group CEO Hanif Yusoof said in his quarterly review.

“The group’s performance was challenged, given the trade slowdown in European markets and longer gestation periods in new investments made by the company during the year. We have taken measures to mitigate some of these challenges by moving into markets where growth is evident.”

“The freight sector however, recorded a phenomenal 64% in growth in revenue during the year under review, thus further consolidating Expolanka’s position as a key regional player in the freight and logistics industry. Having comfortably secured a bigger slice of the freight industry, we are moving forward and have set our sights on improving operational efficiency while consolidating volumes,” Yusoof added.

“We believe that the returns of our new investments will greatly strengthen our bottom line in the near term. We are nearing the completion of our flagship, state-of-the-art warehouse in Orugodawatte which will address every logistical need, not only with storage but also by providing value-added processing. This will propel our business to the next level by providing a total solution to our customers around the world especially in the fashion vertical. Our investments in USA, China and Hong Kong in the freight and logistics sector have performed beyond expectations. The results are encouraging in its first year of operations and we expect a robust contribution from these investments in the near future.”   

The international trading and manufacturing sector recorded lower than expected results. Adverse climatic conditions had a negative impact on the agricultural export business. This was compounded by tough economic conditions in its main overseas markets which dampened margins. Furthermore, lower earnings in the commodity business due to price volatility affected the sector. The company is in the process of reviewing non-core areas in this sector in order to enhance profitability.

The travel and leisure sector recorded a healthy performance during the year in review. The outbound travel segment continued to record growth through its innovative product offerings. The recent acquisition of Akquasun Holidays facilitated the exponential growth recorded in the sector. The focus now is to strengthen operational efficiencies while maintaining growth in sales.  

Yusoof went on to say: “The focus next year will be on consolidating the existing businesses and the portfolio within the group is currently under review. The environment that confronts us is one that demands a different approach and our experience in handling change will be vital. The company remains positive and confident of growing the business in the year ahead.”

Expolanka Holdings, the holding company of the Expolanka Group, commenced operations in 1978. The company is listed on the Main Board of the Colombo Stock Exchange as a diversified conglomerate. With diversified interests in freight and logistics, travel and leisure, international trading and manufacturing, and investment and service sectors, the group, which has a global presence in over 16 countries and 44 cities, has 60 subsidiaries and joint venture companies. Expolanka Holdings had a turnover of Rs. 50 billion and net profit of approximately Rs. 1.3 billion in the year ended 31 March 2013.