Tourism sector drags down Sri Lanka Aitken Spence June net
ECONOMYNEXT – Sri Lanka’s Aitken Spence Group said June 2016 quarter net profit fell 69 percent to Rs249 million from a year ago, with its key tourism business hit by higher costs and lower returns.
Sales rose 31 percent to Rs7.5 billion over the period, according to interim results filed with the stock exchange.
Earnings per share fell to 61 cents from Rs1.04.
The group’s tourism business made a loss, while the maritime and logistics business almost tripled profits.
“Investments in hotel sector projects such as Heritance Negombo, Turyaa Chennai and RIU Ahungalla, and related debt servicing costs alongside diminished returns from hotel operations in the Maldives and the garment sector negatively affected pre-tax profits,” a statement said.
“Low returns from the Maldives’ operation as a result of stagnant tourist arrivals and the dilution of rates together with investments made towards a number of new projects have adversely affected the returns of the first quarter.”
The tourism sector has shown promise in the first quarter, with an increase in the topline from the year before, amid unfavourable conditions in foreign operations, the statement said.
The coming months are expected to continue this trend with the recent unveiling of Heritance Negombo and the launch of RIU Ahungalla, a 500-room hotel developed in collaboration with global hospitality leader RIU, it said.
”The maritime and logistics sector has performed exceptionally well with a 112 percent increase in PBT particularly from the port management and maritime education segments when compared with the previous year’s corresponding period.”
(COLOMBO, August 13, 2016)