Expolanka ends FY 2023 focusing on consolidation strategy

Overseas-exposed Expolanka Holdings PLC ended its financial Year (to end March) 2023 with revenue of Rs. 546 billion and Profit after Tax of Rs. 31 billion, displaying resilience in the face of a challenging macro environment, while pursuing a strategy of consolidation paving the way for future growth.

Expolanka's international business operations contributed 95 per cent to the total group performance. The company also achieved an EPS of Rs. 15.88 per share and an ROE of 22.67 per cent during the same period.

For the fourth quarter, Expolanka (EFL) achieved a revenue of Rs. 55.1 billion, gross profit of Rs. 19.3 billion, and operating profit of Rs. 1.08 billion.

However, the appreciation of the Sri Lankan Rupee against the USD caused the group to record an exchange loss of Rs. 2.4 billon during the quarter under review, the company said this week.

A range of factors including key North American trade lanes experiencing a slowdown in global trade due to high inventory levels from pandemic-era overstocking, reduction in consumer spending and new orders from most retailers, geopolitical tensions, and increased energy costs affected the sector during the past year. However, the company believes that the slowdown is part of short-term cyclical changes following a strong economic performance in 2021.

Despite the challenges, the logistics sector remained focused on core business fundamentals with EFL Global onboarding new customers and increasing the wallet share reflecting the continuity and consistency of EFL’s long term strategy. The US market remained the key driver of business, while the European and Asian trade lanes performed satisfactorily.

In pursuit of future growth, EFL Global completed two large acquisitions valued at Rs. 35 billion, acquiring Trans American Customs broker and Locher Evers Inc, expanding EFL's service portfolio and customer base and consolidate its North America operations.