Aitken Spence ups 1Q profit by 42%

Friday, 11 August 2017 00:00 - - {{hitsCtrl.values.hits}}

Blue chip conglomerate Aitken Spence Plc reported a pre-tax profit of Rs. 678 million for the first quarter, while the group’s profit attributable to shareholders of the parent grew by 42% to Rs. 355 million over the previous year.

The company’s financial results for the three months ended 30 June 2017 released to the Colombo Stock Exchange on Thursday reported that the revenue for the first quarter increased by 54% to Rs. 11.6 billion, whilst earnings per share for the quarter grew to Rs. 0.87, an increase of 42% over the corresponding period of the previous year.

“We are pleased to record an improved first quarter performance year-on-year on the strength of our diversified portfolio. Our maritime and logistics, strategic investments and services sectors contributed well to the performance of the group. In the tourism sector, the travels segment did well, while the hotels segment showed mixed results. The Maldives hotels improved on last year’s performance in the first quarter, and we expect the growth momentum to continue. Our hotels in Sri Lanka had a challenging year despite strong performances from our flagship properties, Heritance Kandalama and Heritance Tea Factory,” said Aitken Spence Plc Deputy Chairman and Managing Director J.M.S. Brito.

The resumption of full operations of its power plant in Embilipitiya and the consolidation of RIU Sri Lanka hotel as a subsidiary with effect from the third quarter of the last financial year boosted the group’s revenue. The 500-room RIU Sri Lanka located in Ahungalla is a partnership between Aitken Spence and RIU Hotels & Resorts. RIU operates 95 resorts in 19 countries.

Increased revenue from apparel manufacture and elevator agency businesses made a positive contribution to the group’s performance. Aitken Spence operates two apparel factories in Mathugama and Koggala, and represents OTIS, the world’s largest manufacturer and maintainer of people-moving products including elevators, escalators and moving walkways.

“A subsidiary company of Aitken Spence launched a 10 MW waste-to-energy plant in Muthurajawela which will be operational in two years. It is first time that Sri Lanka will be generating green energy from waste. The plant will use waste generated from the Colombo municipal limits, utilising globally-renowned moving grate incinerator technology,” added Brito.

Aitken Spence recently added an engineering solutions arm to its diversified business representing leading brands in air-conditioning and power generators.

Aitken Spence has entered a partnership with the second largest international parcel delivery network in Europe, the DPD Group and DTDC, India’s largest courier company, to represent DPD and DTDC in Sri Lanka and the Maldives. Aitken Spence noted that DPD and DTDC have made steady progress in the local market and had gained the trust of stakeholders in a short period of time.