Sri Lanka’s Expolanka Holdings records Rs. 29.2 billion Profit After Tax for 2Q22.
The Morning: Expolanka Holdings PLC stated it delivered a resolute performance amidst a challenging operating environment for the quarter ending 30 September 2022 with a Profit After Tax (PAT) of Rs. 29.2 billion, a 59% year-on-year (YoY) increase.
This resulted in the company delivering a year-to-date (YTD) revenue of Rs. 396 billion (YoY +61%) and a revenue of Rs. 161.7 billion (YoY +7%), gross profit of Rs. 28.3 billion (YoY +25%) and PAT of Rs. 9.0 billion (YoY -25%).
During the quarter, the company focused on maintaining performance stability whilst building infrastructure and capabilities for future growth.
Earnings from international operations continued to remain above 95% as Expolanka Group consolidated its performance during the quarter.
With these results, the company was able to generate an earnings-per-share for the quarter of Rs. 4.63.
The global macro environment continues to be volatile with market conditions remaining uncertain, with visibility and predictability remaining challenging.
Expolanka stated it has demonstrated its capabilities to remain agile and adapt to these challenging conditions in the past. The company will remain unwavering in its approach to delivering on its strategic initiatives whilst adjusting to market challenges. The focus will remain on the long-term as the organisation looks towards the future, building capabilities, infrastructure and systems to face an ever-changing and evolving global environment with the single focus of creating sustainable value for all stakeholders.
Expolanka Holdings PLC has built businesses globally, from EFL Global being recognised among the Top 25 Airfreight Forwarders and Top 35 Ocean Forwarders in the world, to establishing one of Sri Lanka’s most premier travel brands, Classic Travel.
The logistics sector navigated through these challenges as the business delivered a Revenue of Rs. 159.3 billion (YoY +6%), gross profit of Rs. 27.6 billion (YoY +23%), and profit after tax of Rs. 8.5 billion (YoY -30%) for the quarter under review. The above resulted in the sector delivering a YTD Profit after Tax of Rs. 27.3 billion, returning growth of 45% YoY.
Whilst gaining market share, the leisure sector focused on efficient procurement and operational excellence to deliver a revenue of Rs. 811 million (YoY +233%), gross profit of Rs. 545 million (YoY +319%), and PAT of Rs. 243 million (YoY +2,026%), surpassing the previous quarter’s performance.
The investment sector remained steady, recording a revenue of Rs. 1.7 billion (YoY +85%) and a PAT of Rs. 295 million (YoY +425%), with the main contribution coming from the export operation. The portfolio strategy of moving into high-margin products with less volatility drives the sector’s growth. The IT business too, is gaining ground with improved contributions to the Group’s overall performance.
Increasing emphasis on working capital management and cash conversion, Expolanka was able to improve cash from operations to Rs. 110 billion, settling Rs. 67 billion in debt and reducing its gearing ratio to 27%.
OSL take:
The profits recorded by Expolanka Holdings is indicative of the strength and growth of Sri Lanka’s private sector even amidst challenging economic conditions in the country. The performance of businesses like Expolanka also shows the overall resilience of Sri Lanka’s economy as well as the growth and business potential in the country. With Sri Lanka working towards becoming a business destination in the South Asian region supported by the country’s geographical positioning in the Indian Ocean and the strong trade ties enjoyed by the country, there’s an expansion in business/investment opportunities in Sri Lanka. Given that Sri Lanka’s economy has shown great resilience through the years and is once again on the path to recovery after facing challenging economic conditions as well as the business conducive environment for business in the country, foreign businesses/investors could explore the expanding opportunities in Sri Lanka.
| Article Code : | VBS/AT/10112022/AT_2 |