Expolanka Holdings PLC has recorded a consolidated group profit before tax of Rs. 1,319 million for the first nine months which is an increase of 11% over the corresponding period in the previous year.
The third quarter group profit before tax reached Rs. 311 million. The group profit attributable to the equity shareholders of the parent company recorded 2% growth for the first nine months.
The revenue of Rs. 35.02 billion in the first nine months of the financial year 2012/13 represented an increase of 43% over Rs. 24.51 billion recorded in the corresponding period in the previous year.
Quarter revenue grew to Rs. 11.98 billion which was a 61% growth over Rs. 7.44 billion recorded in the quarter for the previous year.
Group CEO of Expolanka Holdings PLC Hanif Yusoof said: “The performance of the group in the first nine months was challenging given the slowdown in European markets and longer gestation periods in new investments. We believe the new investments will start contributing to the bottom line in the medium term.”
The revenue levels for the first nine months of the freight and logistics, the core sector, has grown by 63% over the previous year driven by an increase in freight rates. The sector profit before tax of Rs. 326 million for the quarter and Rs. 1,094 million for the first nine months was an increase of 20% and 7% respectively over the corresponding periods in the previous year. It is noteworthy to say that satisfactory growth in freight volumes has been achieved despite challenges faced in European markets.
The commencement of operations in the new overseas freight ventures had a positive influence in the overall sector performance. These new ventures are set to contribute significantly to the sector both strategically and profitably in the medium term.
The warehouse construction project is nearing completion stage. Although this would result in initial cost increases on a long term basis, the project would have the ability to further strengthen Expo Freight’s (EFL) hold on the overall logistics market. Given the global economic climate, EFL’s aim is to continuously consolidate its position in the market and strive to increase market share.
The travel and leisure sector profit before tax for the first nine months reached Rs. 83 million which is 105% growth over the previous year. Further, the revenue levels for the first nine months recorded 287% growth. The revenue growth was primarily driven the new investment into Akquasun, a global destination management company. The outbound and ticketing arm made significant contribution to the bottom line. The focus in this sector will be to drive volume growth while increasing operational efficiencies.
The international trading and manufacturing sector managed to sustain the revenue levels amid a challenging economic environment in its key markets. The year-to-date revenue levels recorded a 5% growth over last year-to-date results. The profit before tax for the first nine months has declined from Rs. 103 million to Rs. 90 million.
The tea segment which had faced relatively tough economic conditions has started to show positive results. Lower earnings in the agriculture segment due to volatile climatic conditions that prevailed during the year impacted the sector performance. The company is currently in the process of reviewing non-core areas of the business in order to enhance profitability.
The investments and services sector’s profit before tax of Rs. 9.5 million for the quarter and Rs. 51 million for the first nine months were an increase of 157% and 121% respectively over the loss of Rs. 16 million and profit amounting to Rs. 23 million in the corresponding periods in the previous year.
The sector driven by airlines GSA segment contributed positively to profits. The administration cost increase relates to strengthening the corporate management team which was felt needed to bring focus and drive synergies across the group’s activities.
source - www.ft.lk
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