Expolanka Holdings PLC again reported exceptional results driven by the continued growth of its Logistics business for the second quarter of the financial year.
For the quarter ended September 30, 2021 (Q221), Expolanka recorded a Profit After Tax of Rs. 12 bn, at a 166% increase Year on Year (YoY). Revenue for the quarter was Rs. 151.4 bn marking a YoY increase of 208%. Its Gross Profit was Rs. 22.6 bn for the quarter, a 114% increase YoY.
Although the macroeconomic and external environment remained dynamic during this period with continued supply chain disruptions, Expolanka stayed focused on the core fundamentals of its business operations, delivering strong volume growth while adopting proactive procurement strategies and pursuing operational efficiencies. In his quarterly message to stakeholders, Group CEO Hanif Yusoof said, “The continuous success achieved by the company is a reflection of our ability to execute well-defined strategic initiatives effectively whilst remaining agile and nimble amidst this dynamic external environment.”
In its Logistics business, the sector recorded its best quarterly performance with a record quarterly revenue of Rs. 150.2 bn (210% increase YoY) and Rs. 12.1 Bn Profit After Tax (157% increase YoY). Significant growth in volumes was witnessed across Air Freight and Ocean Freight products offered by the company.
In its Air Freight product, Expolanka saw increased volumes from several strategic customers across multiple industry verticals by meeting customer demands effectively and efficiently, thus keeping to its brand promise of growing business and transforming supply chains. Tthe Ocean Freight product also grew during this quarter as a result of increased customer penetration and a growing partner network.
The enhancement of origin capabilities in Sri Lanka, India, Vietnam, China and new markets such as Malaysia and Thailandwas a result of the company building infrastructure and capabilities in these markets.
The North America Trade Lane continued to deliver extraordinary growth, while the European and Intra Asia Trade Lanes experienced stable growth.
EFL completed two acquisitions during the quarter under review. The company acquired Idea Logistics LLC, a US based central American logistics company to fulfil emerging opportunities in relation to nearshoring strategies adopted by US brands. This acquisition is also part of the company’s overall long-term geographic expansion plans to be present in key growth markets.
EFL also concluded the acquisition of Complete Transport LLC, a bonded CFS and trucking company in New York, thus complementing its previous acquisition of Seville (another trucking company based in New York).
In the Leisure sector, Expolanka remained resilient generating a revenue of Rs. 244 mn (206% growth YoY) despite bleak external conditions, by adapting its business portfolio to the new travel norm.