18 November 2024 12:38 am Views - 14
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D.H.S. Jayawardena- Chairman
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Stasshani Jayawardena – Jt. Deputy Chairperson
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Parakrama Dissanayake- Deputy Chairman
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Diversified conglomerate Aitken Spence PLC reported an EBITDA (excluding impacts from foreign currency exchange gains and losses) of Rs. 8.9 billion for the six months ending 30th September 2024, reflecting a growth of 10.4 percent.
EBITDA includes earnings from equity accounted investees; however, excludes interest expenses, tax, depreciation, and amortization.
The Group’s profit from operations (excluding forex) improved significantly by 38.7 percent from Rs.2.5 billion to Rs. 3.5 billion for the six months ending 30 September.
The Group’s Maritime & Freight Logistics sector reported a PBT of Rs. 2.3 billion for the six months ending 30th September 2024. This performance was affected by a decline in business volumes and exchange rate fluctuations.
The Group’s Strategic Investment sector achieved a PBT of Rs. 728 million, reflecting a growth exceeding 100 percent. This impressive performance for the first six months of the year was largely driven by the improved results of hydro power companies and the settlement of previously delayed interest received by the other companies within the Group’s renewable energy segment.
The Group’s tourism sector demonstrated a notable improvement, recording a decrease in losses of 36.9 percent for the six months ending 30th September 2024. The hospitality segment benefited from increased occupancy rates and higher average room rates, leading to better results for local hotels compared to last year.
However, the destination management segment faced several challenges this period. Macroeconomic factors, including the re-introduction of an 18 percent VAT on the sector, which could not be added to previously contracted rates with tour operators, significantly impacted results. Additionally, the ongoing conflicts in the Red Sea adversely affected cruise tourism and charter flights from Eastern Europe, further affecting the segment’s performance.
The Group’s Services sector recorded a loss of Rs. 52.1 million, primarily due to increased costs in the elevator segment, driven by additional costs incurred on the accelerated completion of several high-rise buildings in Colombo. Additionally, the sector was affected by a lower exchange rate on remittances in the money transfer business.
During this period, the Group’s Profit Before Tax (PBT) (excluding forex) of Rs. 1.5 billion saw a remarkable improvement recording a complete turnaround from the loss of Rs. 1.2 billion recorded in the previous year.