Focus on logistics biz helps Expolanka to maintain growth in 1Q

Core logistics sector amplified by the stronger airfreight volumes gave the momentum to Expolanka Holdings PLC during the June quarter (1Q19), as the diversified logistics group reported improved top and bottom line performances.  

Expolanka reported a revenue of Rs.20 billion for the April-June quarter, up 25 percent from the same period last year. The group earnings, which were bolstered mainly by the expensive airfreight business, reported 13 cents a share or Rs.247.3 million compared to 10 cents or Rs.204 million reported for the corresponding period last year. 

The bottom line performance marked an increase of 21 percent year-on-year (YoY). 

The group’s profit before tax stood at Rs.444.7 million for the quarter under review, up 23 percent YoY. 

“Driving the profitability of the group, the logistics sector reported a gross profit of Rs.3.6 billion with YoY growth of 50 percent. This was achieved in a relatively challenging and competitive market environment, where the industry was faced with capacity constraints and pricing pressure. 

“However your organization pursued pre-emptive strategies during the last financial year, in addressing these concerns, which helped to mitigate the challenges above”, Expolanka CEO Hanif Yusoof said in an earnings release. 

Expolanka share is currently trading around Rs.4.00 a share. 

While the airfreight business saw a strong growth, the ocean freight operations too continued to meet expectations, the company said.

“Your company was able to consolidate its core Indian sub-continent operation whilst seeing a strong growth in the Trans-Pacific trade lane operation, which has been an area of focus for the company. The European trade lane too has performed to expectations during the quarter”, Yusoof further said. 

Besides air and ocean freight, Expolanka also runs a relatively small warehousing and transport operation. 

Expolanka, which earlier had interests in too many sectors spreading to food & beverage and education has been shedding those non-core businesses to focus on its core logistics and related businesses since Japan’s SG Holdings Global Pte. Ltd bought the controlling stake of the company. 

Meanwhile, the group’s leisure sector, which engages in inbound tour operations, reported a net profit of Rs.69.7 million, on a revenue of Rs.312 million, up by 18 percent and 2 percent respectively over the same period, last year. 

The group’s investment segment, which mainly houses Expolanka’s export operations, reported a net loss of Rs.125.9 million and a revenue of Rs.627 million, down by 1 percent and 34 percent, respectively.

As at June 30, 2018, SG Holdings Global Pte. Ltd. held 67.48 percent stake in Expolanka.