Sri Lanka’s Expolanka Holdings demonstrates resilience with strong performance in FY2022
Ada Derana: Expolanka Holdings PLC has delivered a strong performance for the 2022 financial year (FY2022), through effective implementation of the Group’s ongoing strategic initiatives which have enhanced its operational agility and alignment with market conditions, while optimizing synergies through a unified approach.
During the year ended 31st March 2022, Expolanka Holdings increased its Annual Group Revenue by 217% year-on-year (YoY) to Rs. 694 billion. Over 95% of this revenue was derived from international operations, reflecting the global nature of the Group’s portfolio and business. Profit After Tax (PAT) too grew by 389% YoY to Rs. 72.7 billion. Expolanka Holdings also achieved an exceptional Return on equity (ROE) of 95.9% as at end March 2022, reflecting the Group’s high operating leverage and efficient asset utilization.
Considering the performance during the fourth quarter of the 2022 financial year (4QFY2022), Group Revenue grew by 220% YoY to Rs. 242 billion, Gross Profit expanded by 287% YoY to Rs. 46 billion and PAT rose by 680% YoY to Rs. 31 billion.
The Logistics Sector continued its strong performance with the sector’s Revenue increasing by 221% YoY during the quarter to Rs. 240.9 billion. Quarterly Gross Profit expanded by 291% YoY to Rs. 45.8 billion and quarterly PAT rose by 561% YoY to Rs. 29.9 billion. This growth was a result of volume expansion, efficient operational capabilities and the company’s proactive procurement initiatives, which complemented its sales strategy to build capacity and stabilize margins. While the North American trade segment remained the key driver of business, the European and Intra-Asia segments too remained resilient and recorded stable growth during the quarter.
The customer-centric approach adopted by the company in the Logistics Sector continues to focus on growing wallet share across strategic customers, whilst gaining traction with identified new customers. The diversified customer portfolio serviced by the company in this sphere includes many leading global brands across a range of key verticals.
Revenue of the Leisure Sector improved by 133% YoY to 280 million while PAT was up by 124% YoY to Rs. 37 million for the quarter. Focus on streamlining the business, expanding service capabilities whilst building a lean and efficient operation, contributed to this performance.
The Investment Sector’s quarterly Revenue grew by 100% YoY to Rs. 817 million, with export operations being the main contributor, while the IT business too is gaining traction. The portfolio strategy of moving into high-margin products with less volatility is driving the growth of the sector.
Expolanka Holdings PLC is a multinational entity with strong presence in logistics, leisure and investments. The Group began moving into international markets in 1992 and now operates in Asia, Europe, Africa and North America. Its international presence now extends across 32 countries. In 2011, Expolanka was listed on the Colombo Stock Exchange, and underwent a significant restructuring process in 2013 to focus on its core business.
The growth and profits recorded by Sri Lanka’s Expolanka Holdings is indicative of the strength and growth of the country’s economy. Despite facing the global pandemic and its adverse effects on the economy, Sri Lanka’s economic sectors and private sector recording a growth and profits indicating economic resilience. Sri Lanka’s ongoing development programme and the target of placing the country as a growing business destination in the South Asian region have also helped the country’s economic expansion as well as business/investment opportunities. The country’s geographical positioning in the Indian Ocean and the many trade agreements as well as concessions enjoyed by the country have also helped boost Sri Lanka’s business/investment opportunities. Given the growth recorded by the country’s private sector, foreign businesses/investors could confidently explore the growing opportunities in Sri Lanka.
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