Expolanka Holdings PLC posted a revenue of Rs. 13. 9 billion for the final quarter of the financial year 2014/15 with a growth of 14% compared to the corresponding quarter of the previous year. Profit after tax reached Rs. 287 million for the final quarter of this year recording a growth of 181% in comparison to the corresponding quarter of the previous year.
“A year after implementing the strategic restructuring plan and striking a partnership with SG Holdings Japan, we are pleased with the progress and confident about our future. The solid platform built with the synergy gained from our partnership with SG Holdings Japan and the focused restructuring strategy will result in aggressive growth in the coming years,” Group CEO and Director of Expolanka Holdings PLC Hanif Yusoof commented.
The strategic restructure was undertaken with the aim of focusing the Group attention on core business sectors, Freight and Logistics and Travel and Leisure.
In spite of the positive growth during the final quarter of this financial year, the Group’s net profit declined to Rs. 1 billion from Rs. 1.5 billion recorded during the financial year 2013/14 mainly due to one off gains recorded in the previous year related to divesting several non-core businesses.
The Freight and Logistics sector posted a revenue of Rs. 11.9 billion for the fourth quarter, indicating a healthy growth of 36% from the recorded revenue of Rs. 8.7 billion during the same period last year. Strong performance from North America Trade lane coupled with steady growth in Asia trade lane supported this growth. The net profit for the sector reached Rs. 407 million for the quarter which is a 100% growth compared to similar period last year.
The Travel and Leisure sector posted a revenue of Rs. 747 million for the financial year 2014/15 demonstrating a healthy growth of 31% from the recorded revenue of Rs. 568 million during the same period last year.
International trading and manufacturing sector recorded a revenue Rs. 1.1 billion, recording an expected decline from the Rs 2.4 billion posted during the corresponding quarter of the previous year. The divestment of several companies in the sector both last year as well as in the third quarter this year resulted in a decline in turnover.
However the restructure efforts helped the sector to improve profitability recording a sector net profit of Rs. 71 million which is a 327% growth when compared to same period last year. The restructuring efforts have also helped the Group to free up capital and deploy it to retire debt and strengthen the balance sheet.
“We are confident in achieving sustainable growth and I believe that our well-defined plans will continue to bear fruit in the future,” Yusoof added.
Courtesy: Daily Financial Times 03 June 2015