Expolanka June profits surge over 200% amid rupee depreciation, strong logistics operations

Expolanka Holdings PLC with interests in logistics, leisure and investments, having a global presence in 34 countries and over 70 cities announced their financial performance for the quarter ending June 30, 2022 presenting strong results maintaining its growth momentum over the last
several years.

The group was able to post revenue of Rs. 235.1 billion, up 146 percent year-on-year (YoY), a gross profit of 36.9 billion, up 156 percent YoY and a net profit of Rs.20.1 billion, up 220 percent YoY for
the quarter. 

Expolanka Group CEO Hanif Yusoof said, “Our asset-lite business model, international network,balance sheet strength, our unified approach to business and our strong leadership team makes Expolanka Holdings PLC a unique value proposition to all our stakeholders.”The group continued to generate strong returns, delivering an ROE of 96.16 percent on a trailing twelve-month (TTM) basis, reflecting the enhanced operating leverage and the efficient asset utilisation strategies adopted by the group. 

The depreciation of the Sri Lankan rupee resulted in an exchange gain of Rs. 6.9 billion whille increasing the net asset value of the company by Rs. 25 billion for the quarter. This is further evidence of the group’s business profile and its balance sheet which has been built over the last several years.

In spite of the global market conditions and traditional off peak demand patterns, the group’s logistics sector was able to exhibit the potential of its operations, with focused execution of strategy enabling the sector to deliver consistent growth during the quarter under review, resulting in revenue of Rs. 233 billion, up 146 percent, a gross profit of Rs.36.2 billion, up 154 percent and post-tax profit of Rs.18.8 billion, up 183 percent.

The air freight product saw volumes tailing off during the quarter as a result of lower demand witnessed across key markets.  Whereas the ocean freight product continued to gain traction and delivered satisfactory growth during the quarter under review.  

The group’s leisure sector delivered a strong performance for the quarter despite the challenges experienced in the local market. The results reflect the efforts undertaken by the business to reorganise its portfolio, adopting a lean and efficient operating model and leveraging its capabilities as the leading travel brand in Sri Lanka. The sector delivered revenue worth Rs. 727 million, up 379 percent YoY and a PAT of Rs. 233 million, up 736 percent.  Expolanka said, historically, this was the best performance by the sector, with the corporate travel portfolio driving the results.

The investment sector of the group remained steadfast recording revenue of Rs. 1.4 billion up 100 percent YoY and a PAT of Rs. 17.3 billion, up 608 percent YoY with the main contribution from  export operations. The sector profits include group dividends of Rs. 16 billion. 

SG Holdings Global Pte. Ltd. holds 75.62 percent stake in Expolanka while Group CEO Hanif Yusoof owns 7.52 percent of the shares as the second single largest shareholder.