Expolanka Holdings posts Rs. 903 m profit for 9M of FY12

Expolanka Holdings PLC sustained its consolidated NPAT for the nine months ended 31 December 2011 at Rs. 903 m, with a consolidated NPBT at Rs. 1,186 m.

Net profit attributable to the equity holders reached Rs. 768 m for the nine months period ending 31 December 2011.

The transportation sector of the Group managed to sustain its year-to-date bottom-line which contributed a PBT of Rs. 1,150 m and PAT of Rs. 932 m. The other three key sectors – international trading, manufacturing and strategic investments – contributed a PBT of Rs. 193 m and PAT of Rs. 159 m to the Group.

Expolanka Holdings PLC Group CEO Hanif Yusoof said: “We believe that the company needs to provide total logistics solution to our valued customers. Steps have already been taken to ensure the continued delivery of high quality of service with innovative product offerings. Despite the dip in the freight industry as a whole due to an overall volume reduction, the core freight sector relatively sustained its position where NPAT dropped by 6 %. This was achieved due to an enriched brand value and our focus on margin management.”

The significant negativities faced by the GSA sector in relation to global economic issues during the last quarter continued to increase. The declining rates, along with less cargo movements, impacted the sector to a great extent.

With the country’s tourist arrivals reaching new heights during the calendar year 2011, Expolanka re-positioned its travel and leisure arm to cater to the evolving needs of the tourist industry resulting in a rapid growth in the customer base.

The setback encountered in the tea sector during the last quarter due to the global market conditions is now improving and this sector is now getting back on track. The penetration made in value-added products during the last two quarter proved to be a sensible move. The company created a strong brand name with the ‘t-sips’ brand securing SLS certification.

In the manufacturing sector, the quarter continued to remain stable with both revenue levels and NPAT increasing over previous year. The company is encouraged by the continued growth in Neptune Recyclers which has turned around its operations. It has also developed the right infrastructure for this operation to expand and strengthen the manufacturing sector.

“The strategic investment sector grew by 125% in terms of NPAT growth during the quarter primarily fuelled by the performances of APIIT, our tertiary education institute which has been able to consolidate its operations by offering a wider range of programs. There is a great response from the market for the increased degree programs which we introduced in the recent times. Expansion is also focused in the diversity of degree programs to cater to the diverse segment of the student community who intend to specialise in different fields of education. The management is confident that we can sustain these growth levels where this sector is expected to provide sustainable contribution to the group’s bottom-line,” Yusoof added.

The period under review was highlighted by key events both at group level and individual company level.

“We made additional investments and have increased our stake to 51% in both Expo Freight Pakistan and also in Expo Freight Vietnam. During the quarter we acquired a controlling stake in Norfolk Foods, a strategic move to penetrate into the food industry. This industry is rapidly growing and we are confident that this acquisition would add distinct advantage to our existing product portfolio mix. This quarter we received international recognition for Expolanka’s ongoing efforts in CSR and social marketing at the World Brand Congress,” Yusoof said.

“We continue to pursue developing the right strategies and using the right resources to ensure that we consistently create value to our stakeholders. Our committed workforce, along with the supportive Board, has ensured that we are in the right direction to achieve our long-term goals,” Yusoof concluded.

Expolanka Holdings PLC – the Holding Company of the Expolanka Group – commenced operations in 1978. The company is listed in the Main Board of the Colombo Stock Exchange as a diversified conglomerate.

With diversified interests in transportation, international trading, manufacturing and strategic investments sectors, the Group, which has a global presence in over 12 countries and 38 cities, has 46 subsidiaries and joint venture companies. Expolanka Holdings PLC posted a net profit of Rs. 1.3 billion in the year ended 31 March 2011.