Aitken Spence reports robust 10.4% growth in EBITDA, reaches Rs. 8.9 Bn in 1H
Aitken Spence PLC, reported an EBITDA (excluding impacts from foreign currency exchange gains and losses) of Rs. 8.9 billion for the six months ending 30th September 2024, reflecting a growth of 10.4%. EBITDA includes earnings from equity accounted investees; however, excludes interest expenses, tax, depreciation, and amortization.
The Group’s profit from operations (excluding forex) improved significantly by 38.7% from Rs.2.5billion to Rs. 3.5billion for the six months ending 30 September.
The Group’s Maritime and Freight Logistics sector reported a PBT of Rs. 2.3 billion for the six months ending 30 September 2024.
The Group’s Strategic Investment sector achieved a PBT of Rs. 728 million, reflecting a growth exceeding 100%. This impressive performance for the first six months of the year was largely driven by the improved results of hydro power companies and the settlement of previously delayed interest received by the other companies within the Group’s renewable energy segment.
The Group’s Tourism sector demonstrated a notable improvement, recording a decrease in losses of 36.9% for the six months ending 30th September 2024. The hospitality segment benefited from increased occupancy rates and higher average room rates, leading to better results for local hotels compared to last year.
However, the destination management segment faced several challenges this period. Macroeconomic factors, including the re-introduction of an 18% VAT on the sector, which could not be added to previously contracted rates with tour operators, significantly impacted results.
The Group’s Services sector recorded a loss of Rs. 52.1 million, primarily due to increased costs in the elevator segment, driven by additional costs incurred on the accelerated completion of several high-rise buildings in Colombo.
During this period, the Group’s Proft Before Tax (PBT) (excluding forex) of Rs. 1.5 billion saw a remarkable improvement recording a complete turnaround from the loss of Rs. 1.2 billion recorded in the previous year.
The Group remains committed to environmental, social, and economic sustainability. Led by Executive Director Dr. Rohan Fernando and reporting to both the Group Supervisory Board and the Main Board, the Group formed a Sustainability Council, comprising of Sectoral Managing Directors and C-Suite officials, to oversee sustainability-related targets, KPIs, and decisions.
The Group’s total energy consumption within the organisation for 2Q at 376,507 GJ saw a 16% increase from 2Q, 2023-2024 due to increase in operations within the Tourism and Strategic Investments Sectors. Comparatively, the water consumption within the Group in 2Q at 854,243m3 was 34% less than 2Q, 2023-2024.
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