ECONOMYNEXT – Profits at Sri Lanka based Expo Lanka Holdings, a logistics unit of SG Holdings of Japan, reported profits of 2.9 billion rupees for the December 2022 quarter, down 87 percent as the US Federal Reserve stopped its money spigots.
The group reported earnings of 1.54 rupees for the quarter, down from 11.79 percent a year earlier.
In the 9 months to December earnings were 15.48 rupees on total profits of 32.2 billion rupees, down from 41.3 billion rupees a year earlier.
Revenues fell to 94 billion rupees in the December 2022 quarter, down from 204 billion rupees a year earlier, cost of sales fell 55 percent to 20.6 billion rupees and gross profits fell 46 percent to 20.3 billion rupees.
However unspecified administration costs rose 39 percent to 16.2 billion rupees.
“The logistics sector navigated through the challenging macro-economic environment, adopting its long-term strategy and concentrating on the fundamentals of the business,” Group CEO Hanif Yusoof told shareholders.
“The sector experienced a reduction in operating volumes across both Air Freight & Ocean Freight products, led by the overall slowdown in global trade volumes impacted by high inventory levels, inflationary fears and the global energy crisis.”
Expo Lanka Holdings saw surging revenues during the Coronavirus pandemic and the US Federal Reserve and other reserve currency central banks printed money and triggered artificial demand, creating supply chain bottlenecks.
US Fed Chief Jerome Powell continued to print money blaming supply chain problems for inflation in the same manner that in the 1970s ‘oil shocks’ were blamed for inflation shortly before the Bretton Woods collapsed. (The Fed chair strikes a wary tone on inflation, but says this isn’t the time to raise interest rates).
But from March 2022, the Federal Reserve stopped printing money and began to withdraw excess liquidity from the banking system. (Colombo/Jan29/2022)