Expolanka Holdings PLC delivered a resolute performance amidst a challenging operating environment for the quarter ending September 30, 2022 with a revenue of Rs. 161.7 billion (YoY +7%), Gross Profit of Rs. 28.3 Bn (YoY +25%) and Profit After Tax of Rs. 9 billion (YoY -25%).
This resulted in the Company delivering a YTD Revenue of Rs. 396billion (YoY +61%) and Profit After Tax of Rs. 29.2 Bn (YoY +59%). 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.
The logistics sector navigated through these challenges as the business delivered a Revenue of Rs. 159.3Bn (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. These resulted in the sector delivering a YTD Profit after Tax of Rs. 27.3 billion, returning growth of 45% YoY.
Soft demand conditions have resulted in Air Freight volumes tailing off during the quarter. The quarter under review saw Air Freight rates softening gradually, resulting in yield moderation. The Company has consolidated progress on the Ocean Freight product by focusing on increased customer penetration, developing partner networks and enhanced competencies.
The North American trade lane remained the critical business driver; the European and Intra-Asia companies remained resilient with stable growth during the quarter. EFL continues to make inroads into domestic logistics services in its core markets as the business complements its value offering to its customers by enhancing capabilities in all core markets. During the quarter in review, EFL expanded its network to 4 new markets, establishing operations in the UK, with the intention to consolidate its European operations and growing its footprint in Central America by opening offices in the Dominican Republic, Costa Rica and Mexico. Building on the momentum, the leisure sector delivered an enhanced performance during the quarter.
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 milion (YoY +319%) and Profit after tax 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 Profit after Tax of Rs. 295 million ( (YoY +425%), with the main contribution coming from the export operation.
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%.
by Daily News Sri Lanka
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