Expolanka Holdings posts Rs. 1.23 b PAT for FY 11/12

Expolanka Holdings PLC sustained its consolidated nett profit after Tax (NPAT) for the financial year 2011/12 at Rs. 1.23 billion, with a consolidated net profit before tax (NPBT) at Rs. 1.68 billion. The Q4 recorded a YOY growth of 21% in Top Line, 33% growth in Gross Profit and 22% growth in Profit-Before-Tax. The Freight and Logistics Sector of the Group recorded a PAT of 1.11 billion which was increase of 5.3% for the FY 2011/12. The other three key sectors Travel and Leisure, International Trading & Manufacturing and Investments and Services contributed a PAT of Rs. 114 million to the Group.

Group CEO, Expolanka Holdings PLC, Hanif Yusoof said, “Our freight and logistics sector was challenged by the headwinds of global trading and intense competition. This impacted freight volumes and prices across the industry thus limiting the anticipated growth. Our strategy was volume driven. We proactively ventured during the early part of 2012 into new potential markets, Hong Kong, China and USA, sought after by our existing customer base as well”.

In Expolanka’s travel and leisure sector, outbound travels retained the market leadership and made headway into growing opportunities. Classic Colombo made steady progress reinforcing its market share and control. The inbound tours, indeed, a key focus area, given the resurgence of tourism, post conflict, had an impressive year.

The company’s international trading arm was very susceptible to the uncertain conditions in the global trading arena. Exports, especially tea witnessed a dip led mainly by the political pressures that prevailed in its key market, the Middle East.

“The strategic investment sector of the Group, characteristically, went head-on seeking and securing the best investment opportunities the year could offer. We acquired the controlling stake of 50% in an investment of Rs. 300 million in Norfolk Foods, a manufacturing and marketing company of processed food to avail the myriad advantages of a FMCG company,” Yusoof added.

Yusoof said that he saw the company and its network consolidating and reinforcing its entrepreneurship, seeking and turning adversity into opportunity in taking the business to the next level.

“Our strategic focus especially on asset allocation will be on bolstering our shareholder wealth. Return on equity will be our catalyst for growth.”

Yusoof went on to say that in this context, the Company will primarily focus on freight and logistics, the highest revenue earner for the Group, with continued zeal, to expand and drive in its global footprint.

“The stage is already set, with the nation’s aspiration of making Sri Lanka the foremost commercial hub in Asia. The upcoming new harbor and airport together with plans for star-class hotels, the recent legislation passed on free port hub with sweeping tax exemptions will give a boost to reach out to the goals set out for the freight and logistics companies within the Group,” he concluded.