Expolanka posts Rs.283 mn net in 1Q

Expolanka Holdings PLC recorded a net profit of Rs 283.8 million during the quarter ended June 30th, amounting to a 3.74% Year-on-Year (YoY) increase.

Turnover during the quarter increased by a drastic 23.7% YoY to reach Rs 10.4 billion with profits being further boosted by goodwill on investments which accounted for Rs.226.9 million.

Cost of sales stood at Rs.8.49 billion, up from approximately Rs 7 billion in the previous year whilst the company’s administrative expenses recorded a sharp 59.02% YoY increase to Rs 1.48 billion during the quarter.

Income tax incurred by the company amounted to Rs 106.7 million during the quarter, as compared with Rs 102 million. Earnings per share were maintained at Rs 0.15.

The company generated an investment income of Rs 18.7 million, and also recorded a foreign exchange gain of Rs 57.7 million.

EXPO also made significant investments into its freight and logistics sector through a US$ 1 million investment into Expo Freight USA and a further US$ 915,000 into its travel and leisure sector through an investment into destination management company, Akquasun Holidays India.

Commenting on EXPO’s plans for its freight sector going forward, Group CEO, Expolanka, Hanif Yusoof said: “Our focus for the Freight & Logistics Sector would be to continue towards increases in our volumes and maintaining our yield levels.

We are actively attempting to consolidate our existing markets whilst penetrate into new markets with a view to attracting higher volumes.”

He further stated that EXPO would also be placing a strong emphasis on its Travel and Leisure sector.

“We foresee sustenance of the Travel & Leisure sector performance which is strongly backed by the positive government policies in encouraging and promoting the tourism sector. We look forward to implementing our strategy of leveraging on synergies between inbound and outbound sectors mainly in Sri Lanka, India and Maldives. Our focus with this sector would be to continue to grow and consolidate our position as leading operators in both the outbound and inbound markets in the region.” Yusoof said.

The company’s Freight and logistics sector made the highest contribution to EXPO’s bottom line with a profit before tax of Rs 325.6 million, down from Rs 407.4 million last year, followed by its international trading and manufacturing sector which turned a loss before tax of Rs 25.3 million in 2011 to a profit of Rs 67.5 million this year.

The travel and leisure sector meanwhile generated a profit before tax of Rs 55 million, up from Rs 14.8 million, whilst the investments and services sector saw its PBT reduce from Rs 19.1 million last year to Rs 13.3 million this year.