Expolanka ups 1Q pre-tax profit by 72% to Rs. 400.7 m

Thursday, 6 August 2015 00:00 - - {{hitsCtrl.values.hits}}

Gains made through previous year’s consolidation of core sectors; Bottom Line up 28% to Rs. 222 m

Bucket. Expolanka Holdings Plc CEO and Executive Director Hanif Yusoof

Expolanka Holdings recorded revenue of Rs. 13.9 billion and a PBT of 400.7 million for the first quarter of the financial year 2015/16. The recorded net profit attributable to equity holders of the group was Rs. 222 million in comparison with the Rs. 173 million recorded during the corresponding period of last year, indicating a 28% increase.

“Our Group has only just started to reap the benefits of our strategic restructuring efforts. Within the last two years we embarked on a steady path of sustainable growth with particular focus and investments on our core sectors, Freight and Logistics and Travel and Leisure. As a result we have achieved a steady growth in this quarter, indicating potential for further progress in the near future,” commented Expolanka Holdings Plc Group CEO and Executive Director Hanif Yusoof.

Earnings from the Freight and Logistics sector for the first quarter posted revenue of Rs. 11.7 billion, recording a 36% growth in comparison to the corresponding period of the previous year. The Group’s core markets in India, Bangladesh and Sri Lanka performed well, fueled by healthy growth in US trade lanes. Bangladesh in particular showed positive results and a healthy growth margin in comparison to the disapointing performance during the last two quarters. Far East businesses such as Indonesia and Vietnam continued to maintain the momentum from the last two quarters and generate healthy revenue. Cost rationalisation conducted during last year in the US, Dubai and Bangladesh have begun to indicate positive results.

The Travel and Leisure sector recoded revenue of Rs. 844 million, posting 24% growth in comparison to the corresponding period of the previous year.The group’s outbound travel operations recorded postive results, further boosting the healthy growth that the sector continued to show throughtout last year. Expolanka’s inbound business has yet to reach its potential.

The group’s International Trading and Manufacturing sector recorded revenue of Rs. 1.2 billion, posting a drop of 57% in the wake of divestment by several companies in the sector.

The Investments and Services sector recorded a revenue of Rs. 130 million.

“In the current business year, we will concentrate on achieving higher profitability and continued growth in all business units. We are optimistic about our growth opportunities within this financial year,” Yusoof added.