Expolanka Holdings posts Rs. 402 Mn post-tax profit for 2Q 2014

Expolanka Holdings PLC posted a revenue of Rs. 14.9 billion for the second quarter in the financial year 2013/ 14 up from Rs. 12.6 billion in the corresponding period 2012/2013 period.

The Group recorded a Net Profit after Tax (NPAT) of Rs. 402 million while the Net Profit attributable to the equity holders of the parent reached Rs. 342 million in compari- son to Rs. 289 million recorded during the corresponding period last year, the organization said in a statement.

Group CEO of Expolanka Holdings PLC, Hanif Yusoof said, “The results of the second quarter of the financial year reflect a strong performance from new markets in the freight sector despite the slowdown in activity in the Indian sub- continent. This has enabled the group to record a profit growth despite volatile market conditions. Our focus is to concentrate on growth markets in freight and consolidate existing businesses in other sectors”.

Freight and Logistics recorded a healthy revenue and profit growth in comparison to corresponding period last year. The increase in profit was driven by growth in trade volumes and revenue generated from new ventures in Hong Kong, China and USA.

These new stations continue to provide positive results despite lower than expected growth from core markets.

Travel and Leisure sector recorded a significant growth in revenue at Rs. 1,313 million from Rs. 823 million recorded in the corresponding period last year. However profit declined from Rs. 77 million to Rs. 61 million partially due to the cost escalation in the growing markets, the group said.

“The decision to exit from Expolanka Commodities and Lanka Premier Foods, both having high volatility to earnings was a result of our strategic portfolio review.

The divestment would enable the group to free up capital and reduce its exposure to high volatility in earnings in the sector. This strategic move will enable us to focus on the core businesses. We will continue to take initiatives to improve group profitability and focus on consolidation of existing businesses to improve efficiency,” noted Mr. Yusoof.