Expolanka’s focus on its core leads to strong Q1 performance

Saturday, 5 August 2017 00:03 - - {{hitsCtrl.values.hits}}

Expolanka Holdings, reported a revenue of Rs. 15.8 billion for the first quarter of 2017/2018, reflecting a 6% increase year-on-year, in the face of global challenges. The company attributes these figures to a sustained focus on its core business.

Profit for the quarter totaled Rs. 252 million, while profit attributed to equity holders for the first quarter of the financial year 2017/18 stood at Rs. 204 million, reflecting a 12% increase year-on-year.

“Our continued focus enabled the Logistics sector to deliver volume, growth across both Air Export and Ocean Export Products,” said Group CEO Hanif Yusoof.

The Air Export Vertical grew by 18% in line with the trend seen over the last several years, and renewed efforts on the Ocean Export operation resulted in a volume growth of 36%. According to Yusoof, the increase in volumes was the catalyst in the group recording a revenue of Rs 14.6 billion for the quarter (up by 18% year-on-year). However, the pressure on yields globally continued to affect the overall profitability of the sector, reporting a profit of Rs. 321 million (drop by 18% year-on-year), he said.

Elaborating on the challenges on a global front, the CEO said that the North American trade lane faced a marginal drop in volumes which was further accentuated with reduced yields resulting from increased buying pressure due to peak season. Trade in Europe continued its trend of healthy performance in volume growth, with Intra Asia Trade lane also maintaining its consistent performance and recording growths within the Air Imports segment.

The company’s leisure sector recorded a revenue of Rs. 305 million, at a net profit of Rs. 59 million for the quarter - a growth of 27% over the figures reported last year.

In the investments sector, the group recorded a revenue of Rs. 944 million during the quarter. “Our previous restructuring efforts and the divestments from certain passive investments has enabled the sector to be more balanced. We will continue to gain efficiencies whilst looking at opportunities to exit from the remaining passive investments,” he said.

Expolanka Holdings PLC has been in operation since 1978 and has a workforce of over 2,300 employees. Headquartered in Colombo, Sri Lanka, the Group’s network spans more than 17 countries in Asia, Africa, USA and the Middle East.