Wednesday Nov 13, 2024
Wednesday Nov 13, 2024
Wednesday, 7 August 2019 00:18 - - {{hitsCtrl.values.hits}}
Entering the first quarter of the new financial year (1Q20) with steady momentum, Expolanka Holdings Plc yesterday announced stable performance as Group revenue increased by 15% Year-on-Year (YoY) to Rs. 22.8 billion, supported by volume growth in its logistics sector.
Recording a YoY +16% growth, Expolanka was able to deliver a gross profit of Rs. 4.6 billion. This in turn enabled Expo to generate a Q1 Profit After Tax (PAT) of Rs. 299 million, amounting to just over 6% YoY growth despite notable market challenges and policy uncertainty.
“The steady performance by Expolanka during the first quarter signals the continuing growth potential of our organisation. While volatility and uncertainty fuelled by trade protectionism strategies have many industry players treading cautiously, we continue to focus on consolidating our customer portfolio, enhancing our service offerings and improving our capacity. These strategies have enabled Expolanka to maintain our profit margins despite local and regional challenges, and we continue to remain optimistic moving forward,” Expolanka Group CEO Hanif Yusoof said.
Group logistics revenue increased by 15% YoY – resulting from steady volume growth across all with Ocean Freight performing relatively well during the quarter. The sector’s Transpacific Trade Lane continued to perform optimally, with strong growth being recorded in most of Expolanka’s key markets during the quarter. Furthermore, the sector’s Intra Asia and Europe trade lanes continued to perform at the optimum levels, contributing positively to the overall performance.
Meanwhile, the Group’s Warehouse segment – which has enjoyed consistent growth over the past two years in particular – posted a strong start in the new financial year, as Q1 revenue and margins recorded healthy growth.
On an overall basis, gross profits in the logistics sector expanded by 17% YoY up to Rs. 4.3 billion while PAT increased by over 10% YoY to Rs. 370 million.
The Group’s leisure sector recorded a muted performance during Q1 as revenue during the period stood at Rs. 292 million, leading to a PAT of Rs. 41 million. These results were indicative of an industry-wide trend, including encouraging signs of a recovery during the end of the Q1.
Meanwhile, the Group’s investment sector, which includes its export operations, IT services company and corporate office, contributed a further Rs. 792 million towards Group turnover during the quarter. The sector, which carries part of the Group shared services and other cost centres was able to implement certain key cost efficiencies within the business during the current year.
