For the quarter ended March 2024, the company reported Revenue of Rs. 66.0 billion, Gross Profit of Rs. 12.8 billion, and a Net Loss of Rs. 5.3 billion.
For the twelve months that ended on 31, March 2024, the group reported Revenue of Rs. 249.9 billion, Gross Profit of Rs. 47.1 billion, and a Net Loss of Rs. 17.6 billion.
Importantly, the company also announced the delisting of its ordinary shares from the Colombo Stock Exchange on 1st March 2024 and received approval from shareholders at an Extra Ordinary General Meeting (EGM) held on the 27th of March 2024.
The company is now seeking approval from the Securities and Exchange Commission of Sri Lanka (SEC) to proceed with the delisting process.
The global economy faced multiple shocks over the past two years, including tightening monetary policies, persistent inflation, trade protectionism, high energy prices, and geopolitical tensions.
The World Bank's January 2024 report predicted global growth would slow to 2.4% in 2024 – the third consecutive year of deceleration – due to ongoing macroeconomic conditions, resulting in operational challenges and tepid financial performance for EFL Global.
In its logistics business, EFL Global experienced a decline in Air Freight and Ocean Freight volumes due to low imports and slowing consumer demand.
This also led to reduced revenue from complementary services such as drayage and warehousing.
On the supply side, Air Freight rates remained steady during the quarter following volatility during the first 3 quarters of the year.
Air Freight Yields were static but well below the prior year.
Ocean Freight rates increased due to disruptions in the Red Sea, but yields remained unchanged as rate hikes stemmed from higher premiums like insurance.
Ocean Yields saw a significant reduction compared to the previous year.
Profitability declined across Air and Ocean Freight, with Ocean Freight more impacted by yield adjustments.
EFL Global augmented its service portfolio to establish capabilities across the customer value chain and increase account penetration.
Its global network presence and infrastructure helped navigate challenging markets.
It continued investing in core markets and advancing integration of recent acquisitions.
Efforts are underway to boost efficiency and enhance processes to improve margins and profitability.
Despite the challenging market conditions, including declining volumes, rate volatility, and supply chain disruptions, EFL’s global network presence and infrastructure capabilities enabled it to navigate through these adversities.
The Logistics sector, which remains Expolanka's core business, reported Revenue of Rs. 63.6 billion and a Gross Profit of Rs. 12.1 billion in Q4.
For the Full Year, the sector generated Revenue of Rs. 240.6 billion and a Gross Profit of Rs. 44.3 billion.
For the quarter under review, the Leisure sector continued to show promising growth reporting Revenue of Rs. 748 million, Gross Profit of Rs. 634 million, and Profit after Tax of Rs. 52 million.
For the twelve months that concluded on 31, March 2024, the sector reported Revenue of Rs. 3.4 billion, Gross Profit of Rs. 2.6 billion, and Profit after Taxes of Rs. 768 million, driven by strong performance in corporate travel and the inbound and leisure portfolios.
The Investment sector reported Revenue of Rs. 1.8 billion and a Gross Profit of Rs. 276 million in Q4, while for the Full Year, Revenue stood at Rs. 6.6 billion, and Gross Profit was Rs. 930 million.
The IT business continued its steady progress, and the export operations have stabilized.
The company has maintained a stable cashflow position due to its consistent working capital cycle and improved collections.
The closing cash balance as of March 2024 was LKR 47Bn.
Expolanka Holdings continued its commitment to Environmental, Social, and Governance (ESG) efforts, carrying out several proactive projects that align with its strategic goals.
Various initiatives were undertaken to raise awareness and implement programs supporting women's empowerment, green logistics, and UN sustainability goals through its Global Goodness campaign.
Despite the challenges posed by the macro environment, Expolanka Holdings PLC has demonstrated resilience and agility in navigating through this volatile phase.
Diverse business segments, global presence, and commitment to operational excellence have enabled the company to adapt and respond effectively to market dynamics while remaining focused on driving efficiency, enhancing profitability, and creating long-term value for stakeholders.