Expolanka Holdings PLC saw its June quarter (1Q20) earnings falling 38 percent year-on-year (YoY) despite the group’s key logistics business recording growth in volumes, the firm’s interim financial accounts released to the Colombo Stock Exchange showed.
Expoland group recorded consolidated earnings of 8 cents per share or Rs.152.9 million for the quarter ended June 30, 2019 compared to earnings of 13 cents a share or Rs.247.3 million reported for the same period last year.
The revenue during the June quarter rose 15 percent YoY to Rs.22.8 billion while cost of sales also rose at a similar pace to Rs.18.2 billion to report a gross profit of Rs.4.6 billion, up 16 percent YoY.
However, higher finance costs, which rose 96 percent YoY to Rs.107.3 million, and administrative expenses, which increased 21 percent YoY to Rs.3.9 billion, resulted in the group reporting a pre-tax profit of Rs.460.7 million, up by just 4 percent YoY.
The post-tax profit stood at Rs.299.2 million, up 6 percent YoY.
According to a segmental analysis of the group’s businesses, the logistics segment recorded revenue of Rs.21.8 billion for the quarter under review, up 15 percent YoY. The segment reported a post-tax profit of Rs.370 million, up 10 percent YoY.
“The sector’s transpacific trade lane continued to perform optimally, with strong growth being recorded in most of Expolanka’s key markets during the quarter. Furthermore, the sector’s intra-Asia and Europe trade lanes continued to perform at the optimum levels, contributing positively to the overall performance,” Expolanka said in a statement.
Meanwhile, the group’s warehouse segment, which has enjoyed consistent growth over the past two years in particular, posted healthy growth in revenue and margins, Expolanka said.
The group’s leisure sector recorded a muted performance during 1Q20 as revenue during the period stood at Rs.292 million, down 7 percent YoY, leading to a post-tax profit of Rs.41 million, which is a decline of 40 percent YoY.
“These results were indicative of an industry-wide trend, including encouraging signs of a recovery during the end of the 1Q,” Expolanka said.
Meanwhile, the group’s investment sector, which includes its export operations, IT services company and the corporate office, contributed a further Rs.792 million towards group turnover, up 26 percent YoY. However the segment reported a post-tax loss of Rs.112.5 million for the period under review.
Japan’s SG Holdings Global Pte. Ltd has a 67.48 percent stake in Expolanka as the controlling shareholder.