Expolanka Holdings posts Rs. 20.1Bn PAT

Expolanka Holdings PLC announced its financial performance posting a Revenue of Rs. 235.1Bn (YoY +146%), a Gross Profit of 36.9Bn (YoY +156%) and a Profit after tax of Rs. 20.1Bn (YoY +220%) for the quarter. Expolanka Holdings PLC Group CEO Hanif Yusoof stated, “The group continued to generate strong returns, delivering an ROE of 96.16% on a trailing twelve month (TTM) basis, reflecting the enhanced operating leverage and the efficient asset utilisation strategies adopted by the group.” The depreciation of the Sri Lankan rupee resulted in an exchange gain of Rs. 6.9Bn whilst increasing the Net Asset Value of the company by Rs. 25Bn for the quarter.

Despite the global market conditions and traditional off-peak demand patterns, the Logistics sector was able to exhibit the potential of its operations, with focused execution of strategy enabling the sector to deliver consistent growth during the quarter under review, resulting in a revenue of Rs. 233.0Bn (YoY+146%), a gross profit of Rs. 36.2Bn (YoY +154% YoY) and a PAT of Rs. 18.8Bn (YoY +183%). “The multi-pronged approach to our business has been centred on generating volumes through a customer-centric approach, building capacity through sound procurement practices and supporting the business through efficient operational excellence.” The Air Freight product saw volumes tailing off during the quarter, a result of lower demand witnessed across its key markets. Whereas the Ocean Freight product continued to gain traction and delivered satisfactory growth during the quarter under review. “Global market conditions remained volatile during the period under review.

Consumer demand was tempered in our North American market, a result of potential Inflationary impacts, whilst the global energy crisis resulted in increased pressure on oil prices. Extended lockdowns in China resulted in reduced supply and further intensified supply chain pressure. Correction in freight rates was visible across both Air & Ocean Freight as capacity returned to the market, albeit still at elevated levels.” The Leisure Sector delivered a strong performance for the quarter despite the challenges experienced in the local market. The Sector delivered a Revenue of Rs. 727 Mn (YoY + 379%) and a Profit after Tax of Rs. 233 Mn (YoY +736%). Historically, this is the best performance by the sector, with the Corporate Travel portfolio driving the results. The Investment Sector remained steadfast recording revenue of Rs. 1.4Bn (YoY +100%) and a Profit after Tax of Rs. 17.3Bn(YoY +608%) with the main contribution from the export operations. The sector profits include group dividends of Rs. 16.0Bn.