Aitken Spence Plc posts 38% growth on PBT to Rs. 5.2 b in 2016/17

Aitken Spence Plc has recorded a 38% rise in its profit before tax year-on-year with a top line of Rs. 45.9 billion for the year ended 31 March. 

The conglomerate concluded the reporting period with a strong fourth quarter performance during which both revenue and PBT figures showed strong growth trajectories, Spence said in a statement. 

The holding company’s revenue growth reflected across all key operational sectors including tourism, maritime and logistics, strategic investments and services. The mid- to long-term strategic investments made by the group in preceding years performed well in spite of challenging market conditions.

The tourism sector recorded a growth of 32% in revenue to Rs. 24 billion, while the maritime and logistics and services sectors reported revenues of Rs. 9.9 billion and Rs. 1.7 billion respectively, indicating a growth of 20% and 43% respectively over the year. 

Commenting on the group’s inclination towards making mid- to long-term investments, Aitken Spence Plc Chairman Deshamanya D.H.S Jayawardena stated: “We have been quick to identify new investment opportunities where we can diversify to remain relevant in the present business context. Catalysed by our investment model, we seek strategic partnerships with global partners that would provide a competitive edge in the markets we intend to serve. At present, we have identified Tourism and Maritime and Logistics as key growth sectors, and have made significant strides in the current financial year to expand the group’s footprint in these selected business domains.”

Aitken Spence Plc reported a profit attributable to shareholders of Rs. 2.9 billion, a rise of 43% while earnings per share also rose by 43% to Rs. 7.12.

The global and local market conditions have remained less than favourable, with slow market growth impacting many of the operational sectors Aitken Spence Plc is engaged in. 

Furthering its commitment towards making key strategic investments, the group invested Rs. 5.8 billion in acquiring property, plant and equipment. Investments made in prospective verticals are expected to make returns in the medium to long term. 

“Despite challenges faced from external factors by some of the key sectors, the group had a commendable year of performance. Over the years we have invested to build robust businesses underpinned by strong fundamentals. Our presence in diverse sectors has been the cornerstone of Aitken Spence Plc’s success, cushioning the group during times of economic adversity. In the year under review, we switched gears and accelerated the pace to reach the next phase of our growth agenda. Uncertainty becoming the new normal for many of our businesses, our purpose for the year was not to be distracted by it, but rather look for opportunities that would take the group to new heights,” commented Deputy Chairman and Managing Director J.M.S Brito. 

Listed in the Colombo Stock Exchange since 1983, Aitken Spence is a blue chip conglomerate with a strong regional presence in the hotels, travel, maritime services, logistic solutions, plantations, power generation, financial outsourcing, insurance, IT, printing and apparel sectors.