Expolanka posts Rs 668 m PAT for 1H 2011-2012

Expolanka Holdings PLC sustained its consolidated NPAT for the first half of FY 2011/12 at Rs 668 mn, with a consolidated NPBT at Rs 862 mn. These results have been achieved against the backdrop of the many challenges faced by the Group in the international trading sector with its global economic downturn, coupled with the regional, economic and political issues that prevailed in the Middle East.

Expolanka Holdings Group CEO, Hanif Yusoof said that within the Transportation Sector, the Freight sub sector performed with stability over the second quarter despite the perceived negativity that was prevalent with the debt crisis.

“The GSA sub sector faced challenging months with the economic and political issues that were escalating in the USA, the EU and the ME. With increased competition in the market place and a drive towards increasing volumes, freight rates took a downward trend. However all efforts were made to remain competitive in pricing and thereby grow this sub sector”. The Transport Sector of the Group has managed to sustain its year to date bottom-line which contributed to PBT Rs. 839 mn and PAT Rs. 690 mn.

The other three key sectors - International Trading, Manufacturing and Strategic Investments - contributed a PBT of Rs. 120 mn and PAT of Rs. 100 mn to the Group. In tandem with growth in the Tourism Sector, the Expolanka Group is undergoing rapid transformation to meet renewed demands. This will facilitate the further growth of its travels segment.

The freight sector will consolidate its position in the upcoming months while the GSA opts to be more competitive in its pricing and positioning.

These positive trends, along with increased revenue base and increased margins on the extended service in supply chain due to the investments in infrastructure, are expected to facilitate better performance in the upcoming period.

Marketing and Corporate Communications Head Paddy Weerasekera said the backward integration into agriculture production will help the company to acquire adequate produce at the right time and at a competitive cost, and thereby enhance the sector’s efficiencies. “We will, in addition, focus our energies on the value added products which are expected to contribute higher margins in the future. With the commissioning of the state-of-the-art manufacturing facility to manufacture the ‘Baraka’ range of black seed herbal products, we have also identified growth potential in this sector and have taken necessary steps to exploit these untapped gaps and markets”.