Expolanka Holdings records 41% growth

Expolanka Group reached an annual turnover of 50 billion for the first time, recording a 41% year-on-year growth propelled by a 64% growth in the Freight and Logistics sector. Expolanka Holdings PLC sustained its consolidated NPAT for the FY 2012/13 at Rs. 1.28 billion, with a consolidated NPBT at Rs. 1.67 billion. The Q4 recorded a YOY growth of 38% in Top Line and 16% growth in Gross Profit.

The Freight and Logistics Sector recorded of Rs. 1.18 billion PAT an increase of 6.6% for the FY 2012/13. The other three key sectors, Travel and Leisure, International Trading and Manufacturing and Investments and Services in total contributed Rs. 101 million PAT to the Group.

“The Group’s year end results reflect the challenges that we continue to face in a volatile global macro-economic environment” Expolanka Holdings PLC Group, CEO, Hanif Yusoof said in his quarterly review.

“The Group’s performance was challenged given the trade slowdown in European markets and longer gestation periods in new investments made by the company during the year.

“The Freight sector however, recorded a phenomenal 64% in growth in revenue during the year under review. We are nearing the completion of construction of our flagship, state-of-the-art warehouse in Orugodawatte which will meet every logistical need, not only with storage but also by providing value-added processing.”

“Our investments in USA, China and Hong Kong in the freight and logistics sector have performed beyond expectations,” Yusoof said.

The International Trading and Manufacturing Sector recorded lower than expected results. Adverse climatic conditions had a negative impact on the agricultural export business. This was compounded by tough economic conditions in its main overseas markets which dampened margins.

Lower earnings in the commodity business due to price volatility affected the sector.

The company is in the process of reviewing non-core areas in this sector to enhance profitability.

The recent acquisition of Akquasun Holidays facilitated growth in the sector. The focus now is to strengthen operational efficiencies while maintaining growth in sales.

Yusoof said, “The focus next year will be on consolidating the existing businesses and the portfolio within the group is under review.”