Expolanka Holdings PLC returned to profits during the three months ended September 30, 2018 (2Q19), from a loss made in the corresponding quarter, last year, as a result of consistent performance of its core logistics business.
The company posted a profit of Rs.348.4 million or 18 cents a share for the quarter under review, compared to a loss of 7 cents a share or Rs.138.4 million reported for the corresponding period, last year.
The group generated revenues of Rs.25.1 billion for the quarter, compared to Rs.21.8 billion a year ago, an increase of 15 percent.
Expolanka CEO Hanif Yusoof in an earnings release said the recent results of the group were due to the focused and consistent strategy of improving the fundamentals in its core logistics business.
“The core air export product remained strong maintaining its growth potential whilst the ocean product too was able to sustain the growth it has seen over the last several quarters,” Yusoof stated.
He said the logistics business managed to stabilize its gross margins due to improvements made into the procurement function of the company.
Expolanka increased its consolidated gross profit by a robust 45 percent year-on-year (YoY) to Rs.4.46 billion.
Meanwhile, the gross profit in the logistics business alone grew by 48 percent YoY to Rs.4.1 billion, the company statement said.
“The Trans-Pacific trade lane continued to see strong growth during the period, contributing positively towards the overall performance of the sector.
The Subcontinent operations too remained strong, performing to our expectations.
The Intra Asia and Europe Trade lane operations too were able to grow during the period under review,” Yusoof said.
Meanwhile, the logistics sub-segment, warehousing and transport reported an after-tax profit of Rs.529 million with a YoY growth of a massive 3511 percent, the company statement said.
“The operating environment for the business overall remains competitive and challenging,” Yusoof said.
The group’s leisure business segment posted a net profit of Rs.63 million, up 56 percent YoY, amid a competitive market environment.
“The relatively new business segments within the sector, i.e. the leisure and inbound operations continue to show gradual improvement in its overall operations and the management team continues to implement plans to optimize the performance within these businesses,” Yusoof said.
For the six months ended September 30, 2018, the Expolanka group reported earnings of 30 cents a share or Rs.595.7 million, compared to just 3 cents or Rs.65.6 million reported for the same period, last year.
The revenue was up little under 20 percent YoY to Rs.44.9 billion.
Japan’s SG Holdings Global Pte. Ltd has a 67.48 percent stake in Expolanka as the controlling shareholder.