Jan 30, Colombo: An agile business model was the cornerstone to Expolanka Holdings PLC sustaining its strong growth momentum during the latest quarter which ended 31 December 2020. The company attributed its performance to staying on the path of a focused and consistent growth strategy while remaining flexible and optimizing opportunities in a dynamic operating environment.
The quarter’s performance has resulted in the group generating a Revenue of Rs 143.2 billion and a Profit After Tax of Rs 10.8 billion for the first nine months ending 31 December 2020.
During the quarter under review, the group recorded a revenue of Rs 57.8 billion (a 108% increase YoY) with a Gross Profit of Rs 9.7 billion and a Profit After Tax of Rs 4.5 billion. The quarter’s growth was driven by the core Logistics business, which recorded a strong performance due to the company’s steadfast pursuit of a long-term strategy to expand the customer profile, diversify service offering, strengthen origin performance, consolidate the procurement function and continue investing in technology.
The sector maintained a steady sales volume due to the gradual return of base business, complemented by the supply of Personal Protective Equipment (PPE). Market rates, origin efficiencies and procurement practices improved yield and a unified collaborative effort led to the Logistics sector delivering Revenue of Rs 57.3 billion, Gross Profit of Rs 9.5 billion and a Profit After Tax of Rs 4.7 billion for the quarter. The strong revenue was buoyed by elevated freight rates in the airfreight market- to optimize this disruptive environment, EFL used its proactive procurement strategies to leverage long-term carrier partnerships which enabled the company to secure healthy profitability during the quarter.
Key markets were positive, in particular the Far East market which performed exceptionally during the quarter while operations in the Indian sub-continent remained robust. The North America trade lane remained the largest contributor of business whilst the European trade lane showed resilience and Intra Asia trade lane remained measured during the quarter under review. The company noted that although global supply chains remain disrupted, a steady return to capacity would stabilize the markets resulting in yields settling going forward.
Notably, the Leisure sector focused on a robust restructuring which enabled the sector to operate in a lean and efficient manner while safeguarding the brand. Despite a challenging quarter for the sector and its peers, Expolanka persisted with business restructuring in Leisure with a view to optimize opportunities once airports open and travel restrictions are removed. From a portfolio perspective, the company has identified the need to focus on innovative solutions and experiential travel requirements.
Export operations drove the stable performance of the Investment sector which generated a revenue of Rs 478 million. The technology servicing arm expanded its customer portfolio and market presence and performed commendably.
Assuring shareholders of continued diligence, Expolanka reiterated its commitment to following through on long-term strategic initiatives and adapting to the needs of customers and business partners remains the company’s focus whilst managing operations in a dynamic business environment.