Expolanka Holdings reports Rs. 61.5 Bn quarterly revenue

Expolanka Holdings PLC for the quarter ending September 30, 2023 has reported a revenue of Rs. 61.5 billion, with a Gross profit of Rs. 12 billion and a Net loss of Rs. 1.5 billion.

For the first half of FY24, the company recorded a revenue of Rs. 117 billion, a Gross profit of Rs. 23.3 billion and a Net loss of Rs. 7.1 billion.

Performance for the quarter was driven by the logistics sector, having recorded a revenue of Rs. 59.2 billion and a gross profit of Rs. 11.3 billion. Air and ocean freight volumes declined due to low consumer demand and high retail inventory levels impacting the results.

However, Expolanka’s strong customer relationships and network enabled it to maintain market share. The sector delivered a revenue of Rs. 112.6 billion, a gross profit of Rs 21.9 billion and a net loss of Rs. 7.4 billion for the first half of the financial year. In the period under review, low consumer demand and elevated retail inventory levels have led to reduced retail orders, impacting EFL’s volumes in both Air and Ocean portfolios. While freight capacity improved from its pandemic premium, the increase created excess capacity, causing a sharp decline in freight rates.

However, EFL Global has adapted to the challenging market conditions by maintaining close relationships with existing key accounts and actively pursuing new customers. Recent acquisitions, Trans American Global and the LEI Group, have met expectations, and integration efforts are progressing well. The leisure sector reported robust growth, with a Revenue of Rs. 838 million, a Gross Profit of Rs. 688 million and Profit after Tax of Rs. 262 million for the quarter.

Performance was led by the corporate travel business. Bolstered by the continued success of its corporate travel services, the sector’s inbound and leisure businesses also gained positive traction, allowing the sector to solidify its standing in the market. This resulted in a buoyant first half with the sector, posting a Revenue of Rs. 1.5 billion, a Gross Profit of Rs 1.3 billion and a Profit after tax of Rs. 515 million.

Other investments, which consist of the IT and Fresh produce business units, contributed a Revenue of Rs. 1.4 billion, a Gross Profit of Rs. 46 million for the quarter under review. Expolanka continued to focus on working capital and cash flow management, supported by efficient working capital management initiatives. Gearing remained low, while a Rs. 6.88 billion dividend was paid during the quarter.

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