Aitken Spence puts up stellar performance
Sri Lanka’s Aitken Spence PLC’s net profit for the March quarter rose 92.8 percent Year- on-Year (YoY) to Rs.1.7 billion, supported by strong gains from tourism operations and strategic divestment of one of the group’s investments.
Net revenue during the quarter rose 39 percent YoY to Rs.9.6 billion while operating profits also rose significantly to Rs.2.5 billion. The Earnings per Share (EPS) during the quarter stood at Rs.4.33 up from Rs.2.24 recorded in the corresponding quarter of the previous year.
The capital gain the group made from divesting of stake in Colombo International Container Terminals Ltd amounted for Rs.655 million.
Meanwhile, the blue chip’s net profit for the Financial Year 2012 (FY12) rose 46.2 percent YoY to Rs.3.7 billion while revenue grew by 22 per cent to Rs.30.7 billion. The annual EPS stood at Rs.9.14, up from Rs.6.25 recorded in the previous year.
The operating profit of the group’ tourism sector grew 65.3 percent YoY to Rs. 2.6 billion.
A press statement by the firm said, the tourism sector contributed nearly 50 per cent of the Group’s profit from operations in the financial year 2011/12, regaining is position as the number one contributor.
It also said that the highest contributor towards the sector’s growth was the Group’s resort properties in the Maldives.
“The results followed a strategic revision of our operations in the Maldives, taking into account the present market realities and trends.
The Group’s six resorts compete in different market segments, but are collectively positioned in the 4 star and 5 star categories, which has seen a heavy demand in a market studded with up market resorts,” it said.
However operating profits of Sri Lanka hotel operations remained flat, due solely to closure of several key properties for refurbishment.
“Heritance Tea Factory performed exceptionally well during the year, while Heritance Ahungalla also returned a satisfactory performance. Heritance Ayurveda Maha Gedara opened its doors during the year as an authentic Ayurveda resort and has been well accepted by the market. The Dambulla wing of Heritance Kandalama was closed for six months for construction of a conference hall and refurbishment of guest rooms. The conference hall is expected to be completed by July 2012. The Sands by Aitken Spence, the Kalutara resort acquired in 2010, opened in May 2012 following an extensive refurbishment. A further 90 rooms will be added to the property by end 2013. In a first for Sri Lanka, The Sands will operate as an all inclusive hotel with dine around concept, offering three dining options to guests,” the press statement said.
It also said group’s Indian operations continue on a management model and further expansion is envisaged. The hotels in the Oman segment turned around, recording satisfactory growth.
The cargo logistics sector of the group recorded its best performance to date achieving a profit from operations of Rs. 846.8 million, which was a 40.7% growth over the previous year. This profitability was generated from a revenue that grew by 13.9% over the previous year to Rs. 4.7 billion.
The strategic investments sector recorded an operation profit of Rs,1.1 billion from which was a 17.7 per cent growth YoY. The sector includes the group’s power, printing, plantations and garments segments.