Topline up 21% at Expolanka but pre-tax profit dips

Friday, 3 February 2017 00:00 - - {{hitsCtrl.values.hits}}

Healthy performance across its logistics sector resulted in Expolanka Holdings Plc posting revenue of Rs. 17.1 billion during the third quarter of 2016, reflecting a 21% improvement in comparison to the same quarter of the previous financial year in the face of exchange rate fluctuations and a challenging external environment.

Despite improved turnover, the company recorded a profit before tax of Rs. 433 million, reducing 23% in comparison to the corresponding period of the previous year.

Growth in turnover was led by the group’s logistics division, which posted a healthy quarterly increase of 24%in revenue to reach Rs. 14.8 billion at the end of the quarter in review despite reduced demand and increased pressure on margins. The company saw increases in the US trade lane as a result of Thanksgiving and year-end retail sales.

“It has been a quarter with mixed results for our company, however, we are pleased to note that despite this challenging environment, Expolanka continues to make sound progress. Our strategy to become more focused enabled us to record notable improvements in volume especially in India, Bangladesh and Sri Lanka,” said Expolanka Holdings Plc Group CEO Hanif Yusoof.

He further noted that the group’s Far East businesses in Vietnam and Hong Kong also posted notable contributions to the company’s bottom line, thereby helping to offset weaker performances in the Middle Eastern and African markets.

As a result of challenges arising from constrained returns from passive investments combined with the impact of a drop in exchange gains, Expolanka recorded a 24% YOY reduction to its Profit Before Tax (PBT), closing the quarter at Rs. 1.24 billion.

Meanwhile, the group’s leisure sector was able to sustain a significant 25% – quarterly growth during the period in review, contributing Rs. 1.2 billion in total revenue largely due to increases in the outbound business.

The group’s ventures sector recorded revenue of Rs. 1.1 billion during the quarter as the write down in passive investments negatively affected profitability and the company continues to seek options of divesting from such ventures in a manner capable of delivering maximum shareholder value.

Expolanka Holdings Plc has been in operation since 1978 and has a workforce of over 2,300 employees. Headquartered in Colombo, the group’s network spans 18 countries in Asia, Africa, the US and the Middle East.