Expolanka achieves record performance
a year ago
For the quarter ended 30 September 2021 (Q221), Expolanka PLC recorded a profit after tax (PAT) of Rs. 12 billion, at a 166% increase Year-on-Year (YoY). Revenue for the quarter was Rs. 151.4 billion, marking a YoY increase of 208%. Its gross profit was Rs. 22.6 billion for the quarter, a 114% increase YoY. In his quarterly message to stakeholders, Expolanka Holdings Group Managing Director and CEO Hanif Yusoof said: “The continuous success achieved by the company is a reflection of our ability to execute well-defined strategic initiatives effectively whilst remaining agile and nimble amidst this dynamic external environment.” He noted that the company was now a truly global organisation, with a geographic footprint covering 32 countries and a majority of business generated from leading international clients outside of Sri Lanka. In its logistics business, the sector recorded its best quarterly performance, with a record quarterly revenue of Rs. 150.2 billion (210% increase YoY) and Rs. 12.1 billion PAT (157% increase YoY). A holistic approach to business has been the hallmark of success for the company; an aggressive sales strategy was well supported by a cohesive network-wide approach aimed at service delivery and securing capacity, which aided in generating healthy yields. Significant growth in volumes was witnessed across air freight and ocean freight products offered by the company. Expolanka tapped into this demand whilst also benefiting from the gradual recovery of global trade, bringing in new strategic customers supported by enhanced services across the supply chain. The company currently services leading global brands across a variety of key growth verticals. In the leisure sector, Expolanka remained resilient, generating a revenue of Rs. 244 million (206% growth YoY) despite bleak external conditions, by adapting its business portfolio to the new travel norm. The investment sector generated a revenue of Rs. 1 billion (58% growth YoY) driven by exports and a strategy of moving into high margin products with less volatility. The IT business also gained ground during the quarter, with improved contribution to the overall growth of the group. In its air freight product, Expolanka saw increased volumes from several strategic customers across multiple industry verticals by meeting customer demands effectively and efficiently, thus keeping to its brand promise of growing business and transforming supply chains. Efforts by EFL Origins in ensuring uninterrupted services despite certain markets undergoing strict lockdown measures further augmented its capabilities to operate in a disrupted environment. Similarly, the ocean freight product also grew during this quarter as a result of increased market penetration and a growing partner network. The enhancement of origin capabilities in Sri Lanka, India, Vietnam, China, and new markets such as Malaysia and Thailand, was a result of the company building infrastructure and capabilities in these markets. EFL also carried out several charter operations during the quarter under review – further evidence of the company’s agile operating capabilities in a disrupted environment to meet customer expectations. The North America Trade Lane continued to deliver extraordinary growth, whilst the European and Intra-Asia Trade Lanes experienced stable growth. EFL completed two key acquisitions during the quarter under review. The company acquired IDEA Logistics LLC, a US-based central American logistics company to fulfil emerging opportunities in relation to nearshoring strategies adopted by US brands. This acquisition is also part of the company’s overall long-term geographic expansion plans to be present in key growth markets. EFL’s own business in the region has steadily grown over the last few years, and the acquisition enables the company to entrench itself in this market, thus consolidating its service capabilities to customers in this market. EFL also concluded the acquisition of Complete Transport LLC, a bonded CFS and trucking company in New York, thus complementing its previous acquisition of Seville (another trucking company based in New York) which will enable the company to secure presence, capabilities, and infrastructure in all key trade gateways in North America.