Feb 09, Colombo: Expolanka Holdings, Sri Lanka-based global logistics provider said the has been able to generate a revenue of Rs. 21.1 billion for the third quarter of 2017 resulting in a YTD revenue of 58.7 billion recording a Year-on-Year (YOY) growth of 22 percent.
Despite continuing yield pressure, the group delivered a Gross Profit of Rs. 3.7 billion for the quarter resulting in a YTD
Gross Profit of 9.5 billion (YOY 13%), with a slight improvement in margins during the quarter, the company said in a stock market disclosure.
Continuing its growth from the previous quarter, the Logistics Sector delivered a Revenue of Rs. 20 billion for the quarter resulting in a YTD revenue of Rs. 55.1 billion (YOY Growth 35%). This growth was visible across the four key products of the logistics sector with Air Freight growing at 30% & Ocean Freight growing at 17% respectively on a YTD basis.
The Sector recorded a Gross Profit of Rs. 3.4 billion for the quarter resulting in a YTD Gross Profit of Rs. 8.6 billion (YOY Growth 19%) despite pressure on margins. Optimizing yields continue to remain a challenge due to higher than expected freight rates and existing capacity constraints.
"Our focus remains on bringing in more efficiencies and improvements in procurement similar to what we have done this quarter," the Group CEO Hanif Yusoof said.
As a result of the volume growth, the company was able to achieve a PAT of Rs. 522 million for the quarter delivering a YTD PAT of Rs. 828 million.
The Leisure sector continued its strong performance during Q3, by delivering a top line of Rs. 274 million and a Gross Profit of Rs. 246 million for the quarter.
The sector delivered a PAT of Rs. 48 million for the quarter, thereby delivering a YTD PAT of Rs. 148 million, in line with the performance last year.
The brands within the sector continue to focus on its core operations backed with a range of value added services.
The Perishable export operation remains the largest business within the Investment Sector, delivering a Revenue of Rs. 2.6 dillion for the year.
The loss incurred by this sector is primarily attributed to the cost of shared services provided by the corporate office, which functions as a strategic & support service center to the group. This consolidation has enabled a more structured and centralized approach to the key functions and we are evaluating additional initiatives to manage this better.
The company is focusing on initiatives that can improve margin efficiencies, and operational efficiencies to improve profitability. The corrective steps taken are gradual in nature and may take medium to long term to see the benefits of these initiatives.
Furthermore, the company will continue to explore avenues of growth and maintain this momentum going forward. The performance consolidation that took place during the quarter is the continuation of the company’s efforts to deliver sustainable profits in the long term.