Aitken Spence records Rs. 4.3 b PBT, with triple digit growth of 124% in Q3

Aitken Spence PLC, a leading conglomerate with a diverse regional presence, reported a Profit Before Tax (PBT) of Rs. 4.3 billion, an increase of 124% for the nine months ended 31 December 2024. For the same period, the PBT excluding forex reached Rs. 4.9 billion. 

The total Group’s revenue in the reporting currency, including equity-accounted investees, increased by 3% over the nine-month period, to reach Rs. 76.3 billion. Group Revenue of which approx. 65-70% is derived in USD or other foreign currencies directly or indirectly reflects the lower exchange rate that prevailed during the period compared to the previous year. The average exchange rate for Q3 reduced by Rs. 34.07 while the average exchange rate for the nine months reduced by Rs. 20.87.

The Group recorded an EBITDA (excluding impacts from foreign currency exchange gains and losses) of Rs. 16 billion for the nine months ended on 31 December 2024, reflecting a growth of 0.3%. EBITDA includes earnings from equity accounted investees; however, excludes interest expenses, tax, depreciation, and amortisation. The Group’s profit from operations (excluding forex) reached Rs. 7.8 billion, an improvement of 4.6% for the cumulative period ended 31 December 2024. 

The Group’s Tourism sector demonstrated a notable improvement with a three-fold increase in profitability, recording a PBT of Rs. 424.2 million for the cumulative Q3 ended 31 December 2024. This was driven by the Group’s hospitality sector which experienced increased occupancy rates across all its hotels, and particularly the overseas hotels segment. The Group’s destination management segment was impacted by the 18% VAT on existing contracts and the Red Sea Conflict that has a direct impact on cruise tourism, although we expect a significant improvement in Q4 with an adjustment to contract rates.

The Group’s Maritime and Freight Logistics sector achieved a PBT of Rs. 3.3 billion for the nine months ended 31 December 2024, despite the substantial reduction in the exchange rate. The bunkering business and the overseas freight and airline segment were the main contributors towards growth in this sector’s performance.

The Group’s Strategic Investments sector recorded a PBT of Rs. 407.3 million and reflected a growth exceeding 100% for the nine months ended on 31 December 2024. This impressive nine-month performance was primarily driven by the enhanced results of the Waste to Energy Power Plant and the settlement of previously delayed interest payments by CEB received by the Group’s renewable energy segment. Furthermore, the Group’s printing and packaging segment including the plantations segment made a positive contribution to the sector’s performance.

The Group’s Services sector recorded a PBT of Rs. 113.8 million for the nine months ended 31 December 2024. The newly launched Port City BPO operation significantly contributed towards this performance. However, the money transfer business was affected by a lower exchange rate on remittances and the additional costs incurred by the elevator segment on the accelerated completion of several high-rise buildings in Colombo.

The Group’s indirect energy consumption per unit revenue increased by 17%, driven by higher operational activity across the Group, particularly in the tourism sector. In contrast, direct energy consumption from non-renewable sources decreased by 3% compared to the third quarter of the 2023–2024 financial year, aligning with the Group’s commitment to reducing emissions. Additionally, the proportion of renewable energy in the Group’s direct energy consumption increased by 104%, reaching 33% of the total—progressing toward the 50% target by 2030—compared to the same period.

Water efficiency also improved, with the Group achieving a 30% reduction in water withdrawal per unit revenue, compared to the third quarter of the previous financial year. This was primarily due to lower withdrawals in the Maldives operations. Meanwhile, the Group’s waste-to-energy power plant repurposed 133,099 tons of municipal solid waste from the Colombo district during the first three quarters of the 2024–2025 financial year—a volume that is equivalent in weight to approximately 26,620 Sri Lankan elephants—contributing to a cleaner Colombo through a strategic and sustainable waste management solution.

During the quarter, Group Human Resources organised an Executive Development Programme (EDP) to strengthen the leadership team’s capacity for driving organisational transformation at Aitken Spence, targeting Assistant Vice Presidents and above. Titled “Purposeful Transformation,” the program was expertly facilitated and conducted in three separate sessions, each tailored to focus on different sectors of the Group. Following the EDP, a workshop was held with members of the Group Supervisory Board (GSB), providing the leadership team with an opportunity to share their insights and ideas, aligning them with the key learnings from the program.