Thursday, November 8, 2012

Expolanka Holdings’ 1H pre-tax profit up 17% to Rs. 1 b

Expolanka Holdings PLC increased its consolidated NPBT for 1H 2012/13 to Rs. 1,007 m, an increase of 17% over the corresponding period previous year of Rs. 861 m. The NPBT recorded for Q2 was Rs. 546 m, which is an increase of 23% over the corresponding year of Rs. 445 m.

The revenue at Rs. 12.64 b in the quarter and Rs. 23.04 b in the first six months of the financial year 2012/13 were 46% and 35 % above the Rs. 8.64 b and Rs. 17.06 b recorded in the corresponding periods in the previous year.

The Freight and Logistics sector recorded a NPBT of Rs. 443 million for Q2 and Rs. 768 million for the 1H. The Travel and Leisure sector recorded a NPBT of Rs. 87 m for 1H which is an impressive growth of 280%. The International Trading and Manufacturing sector recorded a NPBT of Rs. 111 m, a 112% growth, while the Investments and Services sector recorded a NPBT of Rs. 41 m.

 Group CEO of Expolanka Holdings PLC Hanif Yusoof said: “The performance of the Group in the first six months was challenging, given the cost escalations emanating from setup costs related to new overseas ventures and from depreciation of currencies impacting costs. However, a variety of measures have been taken to mitigate these impacts. Despite the encouraging operational performance, some of the overseas companies in the group were impacted with an increase in income tax rates, resulting in an effect on the Group’s Net Profit attributed to its equity shareholders.”

The new overseas freight ventures started during the year are yet to reach budgeted profit levels.

However, adequate focus and resources have been deployed to these ventures to achieve targets while further overheads were incurred in order to revamp the sector.

 The Travel and Leisure sector recorded growth both in local companies as well as in newly-acquired Akquasun Holidays India. Expolanka’s immediate strategy of leveraging on synergies between inbound and outbound sectors mainly in Sri Lanka, India and Maldives, are now starting to bear results.

 The Airlines GSA segment managed to increase the year-to-date profit levels by 33% with a 5% increase in top-line while the tertiary education institute continues to grow in revenue and profits.

Meanwhile, considerable investments made with a view to strengthening and adding value to the group by way of corporate services during the past one year impacted the sector performance to an extent.

 Key Middle East markets in the International Trading and Manufacturing segment have become more conducive to business in comparison to last year. The tea segment had a notable increase in operational efficiency and bottom line thereby giving a boost to earnings from the Trading and Manufacturing sector.

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