Sri Lanka’s Expolanka profits fall in June quarter
Wednesday August 7, 2019 05:02
ECONOMYNEXT- Expolanka Holdings Plc, a logistics and travel firm, said that its net profits for the June quarter fell 38.2 percent to 152.9 million rupees from a year earlier.
Basic earnings per share was 8 cents. The Expolanka share closed 10 cents lower at 5.90 rupees a share on Tuesday.
Revenue for the quarter grew 15.1 percent to 22.9 billion rupees from a year earlier, while cost of sales rose 15 percent to 18.3 billion rupees, leading to gross profits rising 15.7 percent to 4.6 billion rupees.
However, Expolanka Group Chief Executive Hanif Yusoof, in an earnings review, said that there was uncertainty in the logistics industry during the quarter.
"Volatility and uncertainty fueled by trade protectionism strategies have led to many industry players treading cautiously," he said.
Finance costs grew 95.9 percent to 107.3 million rupees as the firm adopted the SLFRS 16 accounting standard on leases.
Due to the new accounting standard, long-term financing and lease payables grew to 2.8 billion rupees by end-June from 1.2 billion rupees at end-March while short-term financing and lease payables grew to 6.6 billion rupees from 4.1 billion rupees.
Expolanka’s logistics sector profits for the quarter grew 10 percent from a year earlier to 370 million rupees on revenue which grew 15 percent to 21.8 billion rupees.
"The volume growth remained stable across all key freight products, with ocean freight performing relatively well during the quarter," Yusoof said.
Transpacific trade continued to meet expectations, and was supported by the Intra-Asia and Europe trade lanes, he said.
The firm’s leisure sector profits fell 40 percent to 41.6 million rupees while revenue fell 7 percent to 291.7 million rupees.
The travel industry suffered during the quarter after Sri Lanka was hit by the Easter Sunday attack in April.
The performance of the leisure sector was slightly muted during the quarter," Yusoof said.
"A slight recovery in performance was witnessed during the latter part of the period in review," he said.
"The corporate travel segment of the business continued to remain strong, whilst the inbound and leisure operations had slowed down during the quarter under review." (Colombo/Aug07/2019)