Expolanka Holdings PLC, a unit of Singapore-based SG Holdings—the holding company of Japan’s Sagawa group—saw its net profit for the June quarter (1Q17) falling 18 percent year-on-year (YoY) to Rs.182.3 million amid non-cash write down in passive investments and higher administrative expenses.
The earnings per share deteriorated to 9 cents from 11 cents.
The group saw its top line for the quarter under review growing as revenue rose over 7 percent YoY to Rs.14.95 billion.
As a result, the gross profit for the quarter rose 25 percent YoY to Rs.2.8 billion with sales costs being maintained just below 4 percent.
The administrative expenses however rose sharply by 26 percent YoY to Rs.2.23 billion while finance costs doubled to Rs.33 million.
According to the management, this increase was due to new initiatives and expansions taken to keep in line with the top line growth.
Expolanka has been in the process of divesting non-strategic businesses owned by the group to focus on its core business.
Accordingly, the group has restructured its business segments under logistics, leisure and ventures.
“It is noteworthy that the strategic focus on growth sectors has delivered a resilient financial performance in the first quarter of 2016/17 even amidst challenges,” Group CEO Hanif Yusoof said.
“With ongoing developments such as the possible restoration of GSP Plus to the EU and other macro-related developments, we intend to capitalize on the emerging growth opportunities, both locally as well as regionally.”
The main logistics business saw its revenue increasing 5 percent YoY to Rs.12.4 billion. The post-tax profit of the segment rose 23 percent YoY to Rs.389.5 million.
The leisure segment’s top line rose sharply by 64 percent YoY to 1.38 billion but the after-tax profit fell 8 percent YoY to 46.5 million.
The revenue of the ventures segment saw a 5 percent drop YoY to Rs.1.16 billion and the after-tax loss of the segment widened 160 percent YoY to Rs.163.6 million.
As at June 30, 2016, SG Holdings owned 67.48 percent of the issued shares of Expolanka.