Expolanka Holdings PLC reported higher earnings for the December quarter helped by its logistics sector performance despite some yield pressure faced by the key business segment, the interim results filed with the Colombo Stock Exchange showed.
The group, which also has interests in leisure and some other business areas, reported earnings of 17 cents a share or Rs.336.5 million for the 3Q18, up 23 percent year-on-year (YoY)
The group revenue rose by 23 percent YoY to to Rs.21.1 billion and the direct costs rose by 21 percent YoY to Rs. 17.3 billion, which resulted in a gross profit of Rs.3.78 billion, up 34 percent YoY.
Meanwhile, for the nine months ended in December 2017, the group reported earnings of 21 cents or Rs.402.1 million, down 43 percent YoY on revenue of Rs.48.3 billion, up 22 percent.
The performance was predominantly led by the group’s key logistics business, which reported revenue of Rs.55.2 billion, up 35 percent YoY.
However, the profit after tax of the segment declined 34 percent YoY to Rs.827.9 million.
“All key trade lanes performed to expectations during the quarter with increased outbound volumes being recorded from the East-Asian markets (China, Hong Kong, Philippines, Indonesia & Vietnam).
Our efforts in enhancing the South Asia – USA trade lanes are starting to show results and we hope the momentum will continue. The Europe & Intra Asia trade lanes continue to augment the overall performance of the group by delivering consistent numbers”, Expolanka CEO Haniff Yusoof, said in an earnings release.
Since Japan’s SG Holdings Global Pte.Ltd bought the majority stake in EXPO a couple of years ago, the group has been trimming its exposure to unrelated areas. Now the group operates with pure logistics focus while exploring further opportunities to expand in the sector. SG Holdings Global Pte. Ltd held 67 percent in EXPO as at December 31, 2017.
Meanwhile, the group’s leisure business saw its top line narrowing by 78 percent YoY to Rs.937.9 million while the after-tax profit of the segment declined by 3 percent YoY to Rs. Rs.147. 6 million for the nine months.
The group’s investments segment reported revenue of Rs. 2.67 billion, a 15 percent decline YoY. However the segment narrowed its losses to Rs.385.7 million from Rs.469.3 million.
“The perishable export operation remains the largest business within the sector, delivering a revenue of Rs. 2.6 billion for the year.
The loss incurred by this sector is primarily attributed to the cost of shared services provided by the corporate office, which functions as a strategic and support service centre to the group”, Yusoof said.