Sri Lanka’s Aitken Spence Plc records revenue growth of 17.5 percent in first quarter of the year
Sri Lanka’s Aitken Spence Plc has reportedly recorded a 17.5% growth in Group revenue during the first quarter of the year at Rs. 12.4 billion compared to Rs. 10.6 billion recorded in the previous financial year.
Accordingly, profit-before-tax for the quarter was Rs. 475 million down from Rs. 538 million over the previous year.
The Group has stated that this was after accounting for an additional charge of Rs. 36 million for the quarter, due to the adoption of the new leasing standard SLFRS 16 as required. There was no corresponding adjustment made in the previous year.
Aitken Spence has stated that it continues to manifest dominance in overseas markets that has generated approximately 75% of the Group’s overall profits in the first quarter of 2019 compared to 60% in the first quarter of 2018.
Overseas expansion, and thereby creating opportunities in local and overseas markets, is a vital aspect of the business strategy of Aitken Spence and it has strengthened the company’s resilience amidst a turbulent economic environment, the Company has reported.
At present, Aitken Spence has a presence in Asia, Middle East, South Pacific and Africa and the efficacy of this strategy is evident to date, reports further state.
“Aitken Spence is a company that has proven that our strength is in our diversity. The devastation of the Easter attacks should motivate unity, resilience and continual progress. With normalcy being gradually restored, we are confident that business will bounce back, and our efforts will continue to this end,” Deputy Chairman and Managing Director Dr. Parakrama Dissanayake has been quoted as saying.
OSL take:
The revenue growth recorded by Sri Lanka’s Airmen Spence Plc is indicative of the strength and growth of the private sector in the country. Sri Lanka’s economic policies along with the continuously improving ease of doing business environment have helped local businesses to thrive despite difficult macroeconomic conditions. Foreign businesses/investors could therefore confidently explore opportunities in Sri Lanka as well as looking at setting up base in the country that would also help engage with other countries in the South Asian region. Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as the trade concessions enjoyed by Sri Lanka adds to its attractiveness as business hub in South Asia.
| Article Code : | VBS/AT/09082019/Z_3 |