This quarter saw Expolanka record an impressive 617% YoY growth in Profit After Tax as a result of expanding business and improving efficiency during the period.
In a message to shareholders, Executive Director and Group CEO Hanif Yusoof noted that the group’s financial stabilization was a result of continued efforts to improve margin efficiency coupled with growth in revenue.
During this quarter the company recorded a revenue of Rs 25 bn, and a gross profit of Rs 4.4 bn.
The logistics sector generated Rs 23.9 bn of the revenue.
Expolanka marked this robust growth streak by focusing on growing volume and market share in its key business sectors of logistics and leisure.
This growth strategy aligned well with a global upturn in the logistics sector; the Trans-Pacific trade lane in particular saw strong growth during the period contributing to the sector’s overall performance.
Expolanka’s core air export product remained strong, and the ocean product was able to sustain the growth momentum it has recorded over the last several quarters.
The operating environment for the business overall remains competitive and challenging, noted Mr Yusoof.
“However, bringing in focus and implementing pre-emptive strategies has enabled the group to deliver this good performance.
We will endeavour to continue focusing on key business drivers such as volume, procurement, and operational efficiencies with a view to mitigating challenges from the external environment.”
In leisure, consolidation and sustainable earnings was the key growth focus that paid off with a 56% YoY Profit After Tax growth for the quarter.
This figure was in line with expectations, noted Mr Yusoof.
“We are seeing a tremendous growth in our core corporate travel business, which is driving growth in the leisure sector.
This is complemented by the management team’s continued implementation of plans to optimize the performance within these businesses,” he said.
In Investments, export operations continued to remain stable, delivering projected results.
IT operations (that primarily provide internal services) maintained its cost structures from the previous year with a focus on creating strategic value to the group.
The sector’s overall contribution to the topline was Rs 774 mn.
Mr Yusoof reiterated the group’s commitment to the fundamentals.
“This year we have focused on growing key business lines, and that strategy is delivering results,” he noted.
About Expolanka Holdings
Expolanka Holdings PLC has been in operation since 1978 and has a workforce of over 2300 employees.
Headquartered in Colombo, Sri Lanka, the Group’s network spans 18 countries in Asia, Africa, USA and the Middle East.