Aitken Spence begins FY26 Q1 on strong note, posts Rs. 4.1 b EBITDA

Aitken Spence PLC has recorded strong Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of Rs. 4.1 billion for the first quarter ended 30 June 2025. 

EBITDA reflects the Group’s earnings prior to interest expenses, taxation, depreciation, amortisation, and foreign exchange gains or losses, but incorporates the share of profits from equity-accounted investees. This reflects a 7% year-on-year (YoY) increase, underscoring the Group’s strong operational performance despite challenging external conditions.

In a statement, Aitken Spence said the Group’s Maritime and Freight Logistics sector led a strong performance, recording a Profit Before Tax (PBT) of Rs. 1.05 billion.

 While the Group’s freight companies were impacted by reduced volumes and margins, the sector’s integrated logistics operations witnessed strong momentum, supported by increased utilisation of the newly commissioned warehouse facility. The Group’s maritime companies also posted steady improvements, contributing to the sector’s overall resilience and growth.

The Group’s Tourism sector demonstrated continued progress, narrowing losses to Rs. 0.22 billion. This growth was supported by stronger performance in the Group’s destination management segment, driven by increased passenger volumes, improved performance in local hotels, and steady gains from increased occupancy across overseas hotel operations in the Maldives, India, and Oman, together with restructuring of the hotel segment debt.

The Group’s Strategic Investments sector continued to demonstrate its long-term value creation potential, with Western Power Company—Sri Lanka’s pioneering waste-to-energy power plant—delivering higher generation and making a notable positive contribution to the sector’s performance. While the sector reported a slight dip in PBT to Rs. 0.10 billion mainly due to the challenges faced in the Garments business, this was offset in part by the strong operational performance of Western Power, reinforcing the Group’s commitment to sustainable and innovative energy solutions. Additionally, the Group’s Printing and Plantations segments contributed positively to the sector’s overall results.

The Group’s Services sector achieved a PBT of Rs. 0.27 billion, reflecting a notable turnaround. The was primarily driven by increased revenue from elevator repair services and the operational efficiencies gained following the timely completion of commercial projects in the previous year, which helped streamline costs and enhance margins. Moreover, the recently commenced Port City BPO operation made a substantial contribution as well.

The Group also recorded a significant improvement in PBT for the quarter, which rose by 74% to Rs. 1 billion. Profit After Tax (PAT) increased sharply by 339.6% to Rs. 405.37 million. 

The quarter was marked by notable achievements across the Group’s companies, including:

• Turyaa Chennai celebrated 10 years of redefining five-star hospitality in South India.
• The Aitken Spence Apparels segment won two awards (Top 20 and category award) at the CPM Best Management Practices Awards by the Chartered Professional Management Institute of Sri Lanka.
• Aitken Spence Travels won an award at the CPM Best Management Practices Awards under the Hospitality and Tourism Services category. 
• Heritance Aarah won Tripadvisor’s Travelers’ Choice “Best of the Best” Award.
• ACE Apparel Koggala became Sri Lanka’s first company to receive OEKO-TEX Organic Cotton certification, marking a major step in sustainable manufacturing.
• Aitken Spence Travels was recertified with the prestigious Travelife Certified sustainability certification.
• Aitken Spence Hotels – Trainees from the Heritance Rise Program were among the top graduates at the Sri Lanka Institute of Tourism and Hospitality Management (SLITHM) 2024/25 Graduation Ceremony.