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Expolanka records Rs 57.8 b revenue in Q320 

01 Feb 2021

The latest quarter’s performance which ended 31 December 2020 has resulted in the Expolanka group generating a revenue of Rs. 143.2 billion and a Profit After Tax (PAT) of Rs. 10.8 billion for the first nine months ending 31 December 2020.  During the quarter under review, the group recorded a revenue of Rs. 57.8 billion (a 108% increase YoY [year-on-year]) with a gross profit of Rs. 9.7 billion and a PAT of Rs. 4.5 billion. The quarter’s growth was driven by the core logistics business, which recorded a strong performance due to the company’s steadfast pursuit of a long-term strategy to expand the customer profile, diversify service offerings, strengthen origin performance, consolidate the procurement function, and continue investing in technology, the company noted issuing a statement recently.  “The sector maintained a steady sales volume due to the gradual return of base business, complemented by the supply of personal protective equipment (PPE). Market rates, origin efficiencies and procurement practices improved yield and a unified collaborative effort led to the logistics sector delivering revenue of Rs. 57.3 billion, gross profit of Rs. 9.5 billion, and a PAT of Rs. 4.7 billion for the quarter,” the company added.  The strong revenue was buoyed by elevated freight rates in the air freight market – to optimise this disruptive environment, EFL used its proactive procurement strategies to leverage long-term carrier partnerships which enabled the company to secure healthy profitability during the quarter.  According to Expolanka, key markets were positive, in particular the Far East market which performed exceptionally during the quarter while operations in the Indian subcontinent remained robust. The North America trade lane remained the largest contributor of business whilst the European trade lane showed resilience and Intra-Asia trade lane remained measured during the quarter under review. The company noted that although global supply chains remain disrupted, a steady return to capacity would stabilise the markets resulting in yields settling going forward.  Notably, the leisure sector focused on a robust restructuring which enabled the sector to operate in a lean and efficient manner while safeguarding the brand. Despite a challenging quarter for the sector and its peers, the statement notes that Expolanka persisted with business restructuring in leisure with a view to optimise opportunities once airports open and travel restrictions are removed. From a portfolio perspective, the company has identified the need to focus on innovative solutions and experiential travel requirements.  Export operations drove the stable performance of the investment sector which generated a revenue of Rs. 478 million.  Expolanka Holdings PLC is one of the leading conglomerates in Sri Lanka and part of the SG Holdings Group, a leading logistics group in Japan. With interests in logistics, leisure, and investments, the company has expanded its presence to cover 23 countries and 60-plus offices across Asia, Africa, Europe, Middle East, and the US.


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