Aitken Spence records 44% PBT growth in 3Q21 from non-tourism operations

• SL’s first waste-to-energy project with an investment of Rs.15bn to be opened this month 
• Says subsequent to reopening of Maldives, group’s hotels segment is gradually recovering

Leading blue-chip conglomerate Aitken Spence PLC’s non-tourism multi-industry sectors reported a profit-before-tax (PBT) of Rs.1.3 billion in 3Q21, a growth of 44 percent compared to the previous year, in the midst of challenging economic conditions. 

These sectors also reported an EBITDA (earnings before interest expense, tax, depreciation and amortisation) of Rs.1.7 billion, compared to Rs.1.4 billion of EBITDA recorded during the third quarter of previous year. The overall contribution from the non-tourism sectors was notable during the second lockdown period of 
the country. 

 Companies in the maritime and freight logistics, power, money transfer, elevator agency, printing and packaging and plantation sectors, performed exceptionally well compared to last year, with an increase in PBT for the quarter, while maintaining a positive performance during the nine months ending on December 31, 2020.  The group’s latest iconic venture, Sri Lanka’s first waste-to-energy project, with an investment of approximately Rs.15 billion, will be formally launched this month by Prime Minister Mahinda Rajapaksa. This project will provide a sustainable solution to the Colombo city’s waste management problem whilst adding renewable energy to the country’s energy profile.

Outstanding performance was seen from the strategic investments sector that recorded a profit before tax growth of 248 percent. The group’s plantations segment recorded an excellent performance during the quarter, with a substantial profit growth.

The printing and packaging segment recorded a significant improvement in its performance, generating healthy profits during the quarter, compared to the negative returns generated in the third quarter of the previous financial year. Furthermore, the maritime and freight logistics sector also performed remarkably to record a 10 percent increase in PBT for the period. 

The group’s tourism sector EBITDA for 3Q21 was a loss of Rs.447.2 million. However, subsequent to the reopening of the Maldives, the hotels segment is gradually recovering alongside the local tourists handled by the Sri Lankan tourism sector.  The destination management arm of the group, Aitken Spence Travels recently facilitated the first of many weekly charter flights from Kazakhstan, an arrangement that will continue until April and which is expected to generate significant foreign exchange earnings to the country.  

The group recorded a loss from operations of Rs.0.2 billion for 3Q21, compared to a profit from operations of Rs.1.8 billion recorded in the same quarter of the previous year. 

The PBT for the third quarter was a loss of Rs.0.5 billion, compared to a profit of Rs.1.2 billion in the previous year, which was due to the pandemic weighing on the tourism sector.
The earnings attributable to shareholders for the quarter was a loss of Rs.334 million, compared to a net profit Rs.787 million, while the net loss for the nine months ended on December 31, 2020 was Rs.2.64 billion, compared to a net profit of Rs.1.35 billion a year ago.  The earnings were impacted by the higher losses recorded in the group’s tourism sector.

“Amidst the challenges faced this year and especially during the third quarter of 2020-2021, the innovative and pragmatic thinking that we had introduced during the initial months of the pandemic came to fruition whilst seen a remarkable growth in the non-tourism sections. We expect a stronger resilience in the next quarter and financial year,” said Aitken Spence PLC Deputy Chairman and Managing Director Dr. Parakrama Dissanayake.