Aitken Spence records strong performance with EBITDA of Rs.7.8bn for 3Q24

• 3Q EBITDA expands 11.8% YoY
• Group PBT for 3Q records Rs.3.4bn
• Quarterly profits driven by 15.0% surge in revenue
• Highest contribution towards overall EBITDA in 3Q from group’s tourism sector

The leading blue-chip conglomerate Aitken Spence PLC reported an EBITDA (earnings before interest cost, tax, depreciation and amortisation) of Rs.7.8 billion for the third quarter of 2023/24.
This is a growth of 11.8 percent over that of the third quarter of the previous year. The group’s EBIT (earnings before total interest) for the quarter stood at Rs.5.3 billion, which was a year-on-year (YoY) growth of 20.7 percent.

The group achieved a profit before tax (PBT) in the third quarter of 2023/24, nearly doubling that of the same period of the previous year, reaching Rs.3.4 billion, while the cumulative first nine-month PBT stood at Rs.1.7 billion, the conglomerate said in a statement.
The rise in quarterly profits was primarily driven by a 15.0 percent surge in revenue, reaching Rs.30.7 billion for the period September to December 2023. The notable growth was predominantly observed in the tourism sector, which experienced a 40.3 percent YoY increase in revenue.
The group’s tourism sector was the highest contributor towards the overall EBITDA in the quarter, recording Rs.5.1 billion, with the maritime and freight logistics sector following with an EBITDA of Rs.1.3 billion. The group’s strategic investments sector and services sector demonstrated consistent performance throughout the quarter as well.
The group’s tourism sector experienced a marked improvement in performance, in Sri Lanka attributable to the surge in tourist arrivals to the country by 143 percent, resulting in an increase in occupancy rates in the local hotels and the number of tourists handled by the destination management company. The Maldives too witnessed an increase in tourist arrivals during the quarter, enhancing the results of the Maldives resorts. 
The group’s maritime and freight logistics sector, though significantly contributing towards the bottom line, faced challenges, as the global freight rates declined, compounded by the adverse effects of the Sri Lankan rupee’s appreciation. This situation affected a significant portion of the sector’s businesses, given that many of the sector’s business activities are conducted overseas or are linked to the US dollar and other foreign currencies. 
In November-December 2023, Aitken Spence PLC joined the Sri Lankan delegation to COP 28, as private sector sponsors. For the first time, the Environment Ministry opened the national delegation attending the conference of parties to the UN Framework Convention on Climate Change (UNFCCC) to include youth, nongovernmental organisations and private sector sponsors as participants.
Accordingly, Aitken Spence supported this effort and made a presentation on private sector’s role to achieve Sri Lanka’s Nationally Determined Contributions (NDCs) and hosted a panel discussion on accelerating the private sector’s action towards climate ambitions in Sri Lanka. 
Furthermore, Aitken Spence is the first conglomerate in Sri Lanka to join the Science Based Targets initiative (SBTi), committing to work towards the net zero status of emission. During the quarter, the company focused on building the necessary capacity and awareness to develop their net zero pathway. 
Listed on the Colombo Stock Exchange since 1983, Aitken Spence is anchored to a heritage of excellence spanning over 150 years and driven by a team of more than 13,000 across 16 industries in 10 countries: Sri Lanka, the Maldives, Fiji, India, Oman, Myanmar, Mozambique, Bangladesh, Cambodia and Singapore.