Commencing the new financial year with strong top and bottom line performances, Expolanka Holdings PLC announced impressive Q1 results, aligned with its ambitious plan to further accelerate the company’s future growth momentum.
Primarily fueled by its global logistics business, group turnover expanded by 25% Year-on-Year (YoY) up to Rs. 19.8 billion while a continuous focus on streamlining global procurement functions enabled further stabilisation in gross profits which expanded by 46% YoY up to Rs. 3.9 billion during the period in review.
This continuous consolidation of Expolanka’s core business culminated in improvements to the group’s bottom line, which posted a Profit After Tax of Rs. 282 million in 1Q19, reflecting an annual growth rate of 11%.
“While we are extremely satisfied at the remarkable momentum that Expolanka has carried into the new financial year, we believe that these results are not just a positive signal of the concerted improvements that the company has made across all of its core businesses, but also a reflection of the consistency of our plans.”
Over the course of the coming financial year, we aim to continuously bolster performances while capturing and exploiting new business opportunities in order to lay the foundation for an expanded local and global presence,” Expolanka Group CEO, Mr. Hanif Yusoof said.
Over the last quarter, the group’s logistics sector continued to provide the strongest contributions to top-line performance, generating a 29% YoY improvement in revenue up to Rs. 18.9 billion, supported by strong growth in its core Air Freight operations and stable growth from its Ocean Freight operations.
Consequently, Expolanka’s logistics segment posted an impressive 50% YoY improvements to Gross Profits, which expanded to Rs. 3.6 billion despite a relatively challenging and competitive market environment, where the industry was faced with capacity constraints and pricing pressure. Bolstered by the pursuit of pre-emptive strategies implemented in anticipation of such conditions, the company was able to consolidate its core Indian sub-continent operation whilst benefitting from strong growth in its Trans-Pacific Trade lane operations – an area of core emphasis for the business – and stable performances within its European trade lane. All of the above factors, enabled the sector to record a vibrant PAT growth of 11% YoY up to Rs. 303 million.
Similar improvements were also recorded across Expolanka’s other core businesses, namely: its leisure sector.
During the first quarter, PAT within the leisure sector recorded growth of 18% YoY up to Rs. 70 million, arising out of the consolidation of its corporate travel business. Standing as one of Expolanka’s most recent diversifications, leisure and inbound tour operations have generated continuous improvements since their inception, and continue to represent a promising new line of diversified revenue generation for Expolanka.
Meanwhile, the group’s investment sector – which is mainly related to export operations - also made positive contributions towards group performance contributing Rs. 627 million towards group revenue.