Aitken Spence shows strong comeback in Q1 through improved performance in June

Aitken Spence PLC has made a strong comeback in June with the group’s main sectors barring tourism recording a growth in profits compared to June 2019, despite the adverse effects of the COVID-19 pandemic on overall economic activity.

“It is noteworthy that three main sectors of the group; maritime and freight logistics, strategic investments and services collectively recorded a profit of Rs. 513 million during the quarter with the performance of these sectors improving steadily month on month,” the company said in a media release.

The group’s tourism sector both in Sri Lanka and overseas was significantly impacted due to the global pandemic and lockdown in the country during April and May, resulting in the first quarter ending June 30, 2020 recording a loss of Rs. 1.5 billion compared to Rs. 216.7 million profit attributable to the shareholders in the previous year.

Resilience was seen in the group’s diversified business portfolio and strategic direction, particularly, in integrated logistics, plantations, elevator agency, insurance and money transfer services that was commendable amidst unprecedented challenges.

The maritime and freight logistics sector performed well under challenging conditions to deliver a profit-before-tax (PBT) of Rs. 459 million. Most companies within the maritime and freight logistics sector, operated continuously without a disruption during the quarter under review with increase in profits from the integrated logistics segment and airline cargo division of 58 per cent and 71 per cent, respectively over the last year.

“Another outstanding sector performance was recorded by the elevator agency, insurance, money transfer segments in the services sector recording PBT of Rs. 96 million,” it said. The strategic investments sector recorded a loss of Rs. 42.4 million for the three months ending June 30 due to foreign exchange translation losses arising from the strengthening of the rupee by nearly 2 per cent during the quarter, although the plantations segment recorded an excellent performance with a growth in profit of more than 350 per cent over the previous year and the power generation segment also making a noteworthy contribution to profits.

The devastating effects of the COVID- 19 and its aftermath that affected global tourism had also impacted on tourism sector’s results during the quarter resulting in a loss of Rs. 2.8 billion for the three months ending June 30.