Expolanka 3Q performance hit by global trade challenges and local economic conditions

Expolanka Holdings PLC saw its performance for the quarter ended on December 31, 2023 (3Q24) take a hit, due to the challenges in global trade and local economic conditions.
For the quarter under review, the group reported a revenue of Rs.66.8 billion and Rs.183.9 billion for the nine months ending on December 31, 2023. 
While gross profit stood at Rs.10.9 billion for the quarter, summing up to Rs.34.2 billion for the nine-month period, Expolanka Holdings recorded a net loss of Rs.5.1 billion for the quarter, contributing to a nine-month net loss of Rs.12.3 billion.

“Global trade faced challenges, due to tightening monetary policies, high inflation, geopolitical tensions, trade protectionism and elevated energy prices.
 These factors contributed to uncertainty, reduced consumer spending and lower demand conditions,” said Expolanka Holdings in a statement announcing its financial performance. Despite the subdued global trade and fluctuating freight rates, Expolanka’s logistics sector sustained its customer base and welcomed new clients, ending the quarter with Rs.64.4 billion in revenue and a gross profit of Rs.10.2 billion. The sector experienced a net loss of Rs.5.2 billion for the quarter. The sector also reported a revenue of Rs.177 billion, a gross profit of Rs.32.1 billion and a net loss of Rs.12.7 billion for the nine months of the financial year.  “A drop in volumes and a steep decline in freight rates have impacted revenue and gross profit, resulting in operating losses. Margins faced pressure, due to the declining freight rates and volumes. Profitability decline was visible across both air and ocean freight and was more pronounced in the latter, due to experiencing visible freight rate corrections during the year,” the entity said.
 The group reported that strategic investments to enhance domestic capabilities and recent international acquisitions namely, Trans American Global and LEI Group, have performed to satisfaction whilst integration efforts have moved forward 
gradually.