Sri Lanka’s Expolanka in Rs830mn Sept quarter loss
ECONOMYNEXT – Sri Lankan logistics group Expolanka Holdings lost 830 million rupees in the September 2019 quarter compared with a profit of 348 million rupees a year ago, interim accounts showed.
Sales grew 15 percent to 28.8 billion rupees but administrative and finance costs rose sharply, according to the accounts filed with the stock exchange.
A company statement said its financial performance for the quarter and year was impaired by the non-recurring 6.75 million US dollar cost of a settlement without the acceptance of liability of its dispute with RCS Logistics Inc.
Expolanka, controlled by Japan’s SG Holdings group, lost 42 cents per share in the quarter.
In the six months to September 2019, the loss was 35 cents a share with a net loss of 677 million rupees while sales grew 15 percent to almost 51.7 billion rupees.
Expolanka group’s main logistics business was in the red while its leisure business profits were lower.
Hanif Yusoof, group chief executive, said gross profit grew 14 percent to five billion rupees during the period.
“During the period, the company has maintained its focus on pursuing its intended strategy of acquiring market share and increasing its customer portfolio, whilst enhancing services to its customers,” Yusoof said of the group’s logistics business which had sales of 27.5 billion rupees.
He said profit margins were under pressure in the group’s leisure sector.
(COLOMBO, 07 November 2019)