Aitken Spence records Rs.2.9bn EBITDA across all sectors for second quarter with 388% growth

Aitken Spence PLC reported an impressive growth of 388 percent from its earnings before interest expense, tax, depreciation and amortisation (EBITDA) of Rs. 2.9 billion compared to Rs. 595 million in the 2Q of the previous year. 

During the 2Q the Group’s non-tourism sectors recorded a growth of 35 percent from its EBITDA of Rs. 2 billion against Rs. 1.5 billion during the 2Q of the previous year. The Group’s tourism sector reached a significant triple digit growth of 188 percent from its EBITDA of Rs. 824 million as against a loss of Rs. 940 million during the 2Q of the previous year.

The Group’s maritime & freight logistics sector contributed the highest profitability with improved performances from the Cargo GSA, freight forwarding and overseas port management operations. The sector recorded a 57 percent increase in profit-before-tax (PBT) for the six months ended 30th September 2021. 

The newly commenced waste-to-energy power plant and the recently acquired Waltrim mini-hydro power plants enhanced the profitability of the sector alongside the plantations segment that provided a substantial boost to the Group’s strategic investments sector. 

The plantations segment commenced commercial production of strawberries with three other varieties of berries to be launched under the brand ‘Berry Much’. Another first in Sri Lanka to cultivate and market the full range of berries.

The Group’s services sector recorded an 83 percent growth in PBT led by the money transfer and elevator agency operations for the six months ended 30th September 2021.

The Group’s tourism sector showed a significant improvement as they recorded adecrease in losses of 54 percent for the six months ended 30th September 2021, amidst the pandemic related travel restrictions. The hotels segment in the Maldives witnessed higher occupancy volumes and is on an encouraging trajectory. 

The hotels segment continued their effortsto heighten health & safety combined with unique and curated experiences for guests.

More than 95 percent of Aitken Spence Hotelsassociates have been successfully vaccinated. The Group recorded a growth of 156 percent in Profit-Before-Tax (PBT) of Rs. 734 million during the 2Q of 2021 compared to a loss of Rs. 1.3 billion in the 2Q of the previous year. This is an outstanding performance considering the downturn in the tourism business. The non-tourism sectors reported a PBT of Rs. 1.4 billion for the 2Q and Rs. 2.7 billion for the six months ended 30th September 2021.

“Aitken Spence performance has been improving each quarter despite thepandemic. The driving factors are the Group’s integrated strategies led by the top management and our hardworking and committed teams that have executed them well by demonstrating purposeful leadership. 

Moreover, the diversification of our businesses and our international presence in eight countries, have been key contributing factors to achieve a compelling performance during the 2Q amidst many setbacks particularly impacting the tourism sector. 

This is encouraging as it shows strong resilience, and we will continue to keep rising above this turbulent environment,” said Dr. Parakrama Dissanayake, Deputy Chairman and Managing Director of Aitken Spence PLC.