Aitken Spence profits up 27% despite domestic tourism challenges
Diversified blue-chip conglomerate Aitken Spence in its third quarter
results recorded an increase of 26.9% in profit before tax over the
corresponding period in the previous year, while net profit attributable
to shareholders increased by 35%.
The Group's net revenue increased by 50.7% up to Rs. 13.68 billion
for the nine months, compared to last year.
Contribution from the Sri Lankan hotel properties declined due to
increased challenges faced by the local tourism industry. The travel
warnings issued by several countries subsequent to the escalation of
hostilities between the Government and the LTTE has had a significant
effect on tourist arrivals to Sri Lanka. Deputy Chairman and Managing
Director of Aitken Spence and Company Ltd., J. M. S. Brito was however
optimistic about the future of the industry.
"While the Group has made strides in power generation, marine and
financial services, our tourism sector continues to face challenging
times. Although we are increasingly looking at the wider region to
expand our hotel operations, we are confident about Sri Lanka's vast
potential for tourism.
We are confident that the new Minister of Tourism will lead the
industry with renewed vigour and vision." he said.
The Group's Maldivian hotel operations, Adaaran Hotels and Resorts
witnessed healthy growth, supported by the commencement of its fourth
resort Adaaran Select Huduranfushi in December.
Aitken Spence became the first Sri Lankan company to venture overseas
in the field of port efficiency management and training.
Programs are currently being conducted successfully in the Port of
Durban, South Africa. This venture has resulted in high demand from
other international ports for similar services.
Further significant developments this quarter came in from the
commencement of operations of Spence Shipping (Pvt) Ltd., agents for
Hapag Lloyd - the Hamburg-based container liner shipping company which
has a presence in more than 100 countries.
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