Significantly reduced volumes from customers and disruptions to the supply chains due to the coronavirus, of which Expolanka began to feel from as early as January, undermined the company’s performance in the quarter ended March 31, 2020.
Expolanka Holdings PLC, one of the leading logistics companies in Sri Lanka, having operations across many parts of the world, was among the first companies to feel the squeeze from the pandemic at its onset in early January given the nature of its logistics business.
“Given the global reach of our operation, the impact of the virus was felt from the onset of the pandemic in January 2020, however the significant impact to the performance of the business was felt from March 2020,” Expolanka Group CEO Hanif Yusoof said.
He said the pandemic had presented them with a dynamic environment in securing air and ocean capacity while the company has been forced to offer extended credit terms to meet their customer requirements.
As supply chains are gradually getting re-activated with economies re-opening and people returning to work with the easing of lockdown orders, stoking demand for goods and services around the world, logistics companies could also return to their normal operations within a few months.
Expolanka reported revenues of Rs.23.8 billion for the three months under review, up 5 percent from a year ago but earnings turned negative to record 18 cents a share or Rs.361.6 million compared to earnings of 20 cents a share or Rs.382.6 million in the same period last year, due to sharp increase in both administrative and selling and distribution costs.
Meanwhile, during the full year earnings ended March 31, 2020, Expolanka reported a loss of 38 cents a share or Rs.736.6 million compared to earnings of 78 cents a share or Rs.1.45 billion in the previous year.
Expolanka’s leisure business, which accounts for an insignificant part of the entire group, came to a near standstill due to the global travel bans.
“The largest business segment, within this sector, the core corporate travel operations declined significantly during the latter part of Q4 and this position will remain until global travel restrictions are removed. With the optimum use of technology, the sector was able to service the requirements and expectations of its customers in the best possible manner,” Yusoof added.
Meanwhile, the group’s investment segment, which has some export operations among others such as IT services and corporate services, saw its export sector activity levels declining with the lockdowns coming into place.
But the company said it managed the liquidity and costs effectively amid scaled down operations.
As of March 31, 2020, Japan-based SG Holdings Global Pvt. Ltd held 68.19 percent stake in Expolanka.