Home Fashion Industry Financial ‘Expolanka Holdings records best financial performance ever at 3QFY2021’ – The Island

‘Expolanka Holdings records best financial performance ever at 3QFY2021’ – The Island

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Propelled by the outstanding performance of its logistics sector, Expolanka Holdings PLC achieved its strongest quarterly financial performance ever during the quarter ended December 31, 2021 (3QFY2021).

Compared to the third quarter of the previous financial year (3QFY2020), Expo generated group revenue of Rs. 204.9 billion, representing an exceptional growth of 254% year-on-year ( YoY). Similarly, Group Gross Profit for the quarter stood at Rs. 38.7 billion, up 299% YoY, while Group Profit After Tax (PAT) increased by 405% YoY annual to reach Rs. 23.0 billion.

“This remarkable financial performance, our best yet for a single quarter, is a resounding endorsement of Expolanka’s strategy, agility and strong fundamentals,” said Hanif Yusoof, Group Executive Director and CEO of Expolanka Holdings. PLC. “It is all the more remarkable that this performance has been achieved during a period of rapid and unprecedented change, during which our key markets have undergone significant transformation.”

“The Group’s key consumer market, North America, has performed well, while European and Asian markets are also opening up,” Yusoof added. “Markets are dynamic and continue to evolve and Expolanka will navigate these changes by pursuing its proven growth strategy, while focusing on business fundamentals and refining its agility. The Group will also seek to capitalize on opportunities with the same singular focus to ensure continued value creation for all of our valued stakeholders.

The exceptional performance of the Logistics Division was the main driver of the Group’s growth over the period. The sector recorded revenue of Rs. 203.7 billion – a year-on-year improvement of 255% YoY, gross profit of Rs. 38.4 billion – a 303% YoY increase and profit after tax of Rs. 23.0 billion, reflecting a growth rate of 384% year-on-year as of 3QFY2021.

The Group’s outstanding results were driven by its unique customer-centric strategy, which resulted in increased volumes of air and ocean freight products. This has allowed the company to continue to increase its share of wallet, as well as attract valuable new strategic accounts. The portfolio of clients served by the company is now diverse, strong and includes a host of leading global brands across a variety of key verticals.

The performance was also an endorsement of the company’s regional expansion strategy. In particular, markets in the Far East experienced strong growth, while established markets such as Sri Lanka and India also performed well.

Although still recovering from the pandemic, the group’s leisure sector consolidated its performance during the quarter, generating revenue of Rs. 298 million, a 243% year-on-year improvement. The company’s proactive, resilient and long-term approach has improved operational efficiency across the business.

The investment sector recorded revenue of Rs. 917 million in the quarter, a year-on-year growth of 92%, with the export operation being the major contributor. The refocusing of the company’s portfolio has improved the performance of the sector. Notably, Expolanka’s IT business grew in popularity during the year.

Along with improving its financial performance, the Group also made substantial progress in its environmental, social and governance (ESG) initiatives during the period. For example, affirming the Group’s commitment to women’s empowerment, Expolanka launched a project to uplift and empower deserving female entrepreneurs in Sri Lanka, providing them with financial support and technical expertise.

Expolanka Holdings PLC is a multinational entity with a strong presence in logistics, leisure and investments. The Group began to establish itself in international markets in 1992 and now operates in Asia, Europe, Africa and North America. Its international presence now extends to 32 countries. In 2011, Expolanka was listed on the Colombo Stock Exchange and underwent a major restructuring process in 2013 to focus on its core business.