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Aitken Spence reports cumulative first nine months PBT of 10.3 Bn

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Harry Jayawardena  Chairman    and  Parakrama Dissanayake Deputy Chairman and MD
Harry Jayawardena Chairman and Parakrama Dissanayake Deputy Chairman and MD

Aitken Spence PLC reported a cumulative Profit Before Tax (PBT) of Rs. 10.3 Bn for the nine months ended December 31, 2022, which was a significant growth of 213.7% over last year. The highest contribution to the Group’s profit before tax was from the Maritime & Freight Logistics sector which accounted for 68.4% of Group PBT.

The Group’s earnings (inclusive of equity accounted investees) before interest expenses, tax, depreciation, and amortisation (EBITDA) for the nine months ended December 31, 2022 was an exceptional performance of Rs. 24.0 Bn showcasing a growth of 144.9%. However, the translation of which to PBT was dampened by the 182.2% increase in finance cost to Rs. 8.3 Bn, due to the high interest rate regime which prevailed during the reporting period.

Despite the 192.7% increase in the income tax charge for the nine months, the Groups’ Profit After Tax (PAT) increased to Rs 7.3 Bn, a growth of 223.1%. Income tax expense for the nine months ended December 31, 2022 increased to Rs 2.9 Bn, stemming mainly from the significant increase in corporate tax rates that were implemented effective October 1, 2022.

According to the Sri Lanka Accounting standards a change in tax rates requires the opening balance in the deferred tax liability to be adjusted to the income statement, which has resulted in reporting a higher income tax expense and a higher effective tax rate. The Group’s Maritime and Freight Logistics sector’s stellar performance of a cumulative PBT of Rs. 7 Bn was led by the growth witnessed by freight, airline cargo GSA, integrated container and ship agency segments. This was followed by the Group’s Strategic Investment sector that recorded a cumulative PBT of Rs. 3.6 Bn with a growth of 395.1% mainly owing to the improved performances of the Group’s apparel manufacturing and printing and packaging segments and the foreign exchange gains recorded by the holding company. The Group’s Services sector also recorded a strong cumulative PBT of Rs. 566.9 Mn with a double-digit growth. The Group’s Tourism sector recorded a loss of Rs. 944.1 Mn for the nine months ended December 31, 2022, mainly due to the challenges faced by the Sri Lankan hotel segment.

During the Q3, the Group recorded a PBT of Rs. 1.7 Bn which was dampened due to the financial constraints faced by the renewable energy and the hotels segments.

“The Aitken Spence Group has witnessed a positive recovery despite facing many setbacks, particularly in the renewable energy segment. Our performance in the cumulative first nine months goes beyond our expectations as we are committed to continually make our business models more sustainable for our people, communities, and our environment,” commented Dr. Parakrama Dissanayake, Deputy Chairman and Managing Director Aitken Spence PLC.


Friday, February 10, 2023 – 01:00

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