Aitken Spence records strong performance 1Q; Ups EBITDA by 111% to Rs. 4.3 b

The leading blue-chip conglomerate, Aitken Spence PLC has reported an impressive EBITDA (Earnings Before Interest cost, Tax, Depreciation, and Amortization) of Rs. 4.3 billion for the first quarter of 2024/25, a triple digit growth of 111% over that of the first quarter of the previous year.

The Group achieved a steady Profit Before Tax (PBT) of Rs. 575.8 million in the first quarter of 2024/25, which was a significant turnaround from the loss recorded in the previous year.

The Group’s tourism sector recorded an EBITDA of Rs. 1.7 billion, followed by the Group’s maritime, freight and logistics sector which recorded an EBITDA of Rs. 1.2 billion. The Group’s strategic investments sector demonstrated a stable performance during the quarter whilst the Group’s services sector was slightly hampered by multiple factors.

The Sri Lankan hotels segment and majority of the overseas hotels saw an improvement in occupancy levels which is encouraging. 

However, the Sri Lankan rupee appreciation during April 2024 had a subdued impact on the Group’s destination management segment. The slight dip in freight rates and the impact of the exchange rate affected the performance of the maritime, freight and logistics sector. The stronger operational performance of the Group’s hydro power companies and the waste to energy power plant together with the recovery of long outstanding dues from the sole off-taker made a positive impact on the Group’s strategic investment sector.

The lower exchange rate on remittances generated in the money transfer business and additional costs incurred in the completion of delayed projects by the elevator segment impacted the Group’s services sector.

During the quarter under review Heritance Kandalama, the celebrated flagship property of Heritance Hotels and Resorts by Aitken Spence Hotels, marked its 30th Anniversary in June 2024. Aitken Spence Hotels was recognised in the Top 5- LMD’s Most Awarded Hall of Fame as leading the hospitality sector. Aitken Spence Travels won the Best Management Practices Award 2024 organised by the Chartered Professional Managers of Sri Lanka (CPM Sri Lanka) in the hospitality and tourism category. Aitken Spence Cargo of the Group’s freight sector secured first place under ‘Shipping & Shipping Related Services Sector’ at the National Business Excellence Awards (NBEA) 2024.

On the sustainability front, Aitken Spence’s waste-to-energy power plant was recently featured in a UN Global Compact publication as an ‘IMPACT story’ from Sri Lanka. This publication was launched at the Forward Faster Now | Asia & Oceania event hosted by the UN Global Compact (UNGC) in Malaysia and presents a series of stories showing the real-world implications of the actions taken by organisations. As one of the first signatories from Sri Lanka, Aitken Spence has been committed to the UNGC for over 20 years, working closely with the world’s largest movement for corporate citizenship towards the advancement of the sustainability agenda. This recognition underscores the company’s strong commitment to supporting local and global development priorities, demonstrating the company’s meaningful, science-based contributions to advancing collective global impacts aligned with the Sustainable Development Goals (SDGs).