Expolanka delivers a strong 3Q as earnings up 40%

Expolanka Holdings PLC marched forward with substantial growth in the top and bottom lines during the quarter ended December 31, 2018 (3Q19), led by its key logistics and freight forwarding business.

The group recorded a 32 percent growth in the top line for the October-december period, from the same period, last year, to report a revenue of Rs.27.8 billion.

Expolanka Group CEO Hanif Yusoof said the logistics segment, which grew 32 percent year-on-year (YOY), accounted for Rs.26.5 billion out of the total revenue.

“Better capacity management and yield improvement was the focus of the procurement function, which continued to build capacity across key carrier programmes. This enabled the sector to sustain its margins during the quarter,” Yusoof said in an earnings release.

“…all core freight products remained robust, with air export continuing to be the largest contributor towards the overall business operations of the firm.

The sector continued to face challenges within the ocean freight product but managed to maintain stability in its global operations,” he added.

The group reported earnings of Rs.24 cents or Rs.469.6 million, up by a strong 40 percent YOY.

The earnings for the period was also supported by a significant increase in the other incomes and gains.

Such incomes rose to Rs.217.6 million during the three months under review, from Rs.29.9 million YOY.

Meanwhile, for the nine months ended December 31, 2018, Expolanka reported earnings of 54 cents a share or Rs.1.06 billion, recording a 165 percent surge in the bottom line.

The revenues rose by 24 percent YOY to Rs.72.7 billion.

The company said it is implementing a group-wide enterprise resource planning system, of which the first phase is expected to be completed by 2Q20. Meanwhile, the group’s leisure business reported third quarter earnings of Rs.66 million, up 38 percent YOY.

Yusoof said this segment was very competitive and faced challenges in managing working capital, although they were able to stretch the margins.

“The industry continues to remain challenging and competitive. Securing margins continues to be the focus area of the business. Whilst maintaining its focus on the core, corporate travel business, the sector will continue to incorporate value-added services, solutions and technologies to enhance its overall service portfolio and maintain its differentiation strategy,” he added.

Japan’s SG Holdings Global Pte. Ltd has a 67.48 percent stake in Expolanka.