This resulted in the Company delivering a YTD Revenue of Rs. 396Bn (YoY +61%) and Profit after Tax of Rs. 29.2 Bn (YoY +59%).
During the quarter, the Company focused on maintaining performance stability whilst building infrastructure and capabilities for future growth.
Earnings from international operations continued to remain above 95% as Expolanka Group consolidated its performance during the quarter.
With these results, the Company was able to generate an EPS for the quarter of Rs. 4.63.
Logistics Sector
Global markets remained disrupted during the quarter resulting in a slowdown.
Whilst the pandemic-led demand surge has subdued, pressure on capacity has gradually eased, resulting in reduced freight rates.
The logistics sector navigated through these challenges as the business delivered a Revenue of Rs. 159.3Bn (YoY +6%), Gross Profit of Rs. 27.6Bn (YoY +23%) and Profit after Tax of Rs. 8.5Bn (YoY -30%) for the quarter under review.
The above resulted in the sector delivering a YTD Profit after Tax of Rs. 27.3Bn, returning growth of 45% YoY.
Soft demand conditions have resulted in Air Freight volumes tailing off during the quarter. However, intense sales efforts supported by solid service capabilities enabled EFL to mitigate these impacts.
The quarter under review saw Air Freight rates softening gradually, resulting in yield moderation.
The Company has consolidated progress on the Ocean Freight product by focusing on increased customer penetration, developing partner networks and enhanced competencies.
Although volumes have lowered during the quarter, it has occurred at a relatively reduced pace.
Ocean rates remain tempered during the quarter with corrections in yields.
Despite market challenges, Expolanka has remained consistent and accurate in its long-term multi-pronged strategy of growing volumes, building capacity and enabling operational efficiencies.
The North American trade lane remained the critical business driver; the European and Intra-Asia companies remained resilient with stable growth during the quarter.
EFL continues to make inroads into domestic logistics services in its core markets as the business complements its value offering to its customers by enhancing capabilities in all core markets.
Key EFL origins continued to deliver strong results, reflecting the success of the infrastructure investments made into these markets over the last 40 years of business.
During the quarter in review, EFL expanded its network to 4 new markets, establishing operations in the UK, with the intention to consolidate its European operations and growing its footprint in Central America by opening offices in the Dominican Republic, Costa Rica and Mexico.
Leisure Sector
Building on the momentum, the leisure sector delivered an enhanced performance during the quarter.
The results underscore the success of the strategies adopted by the Company in re-organizing its portfolio.
Adopting a lean and efficient operating model focused on digitalization of the operational processes enabled the business to further strengthen its position as a premier travel brand in Sri Lanka.
Whilst gaining market share, the leisure sector focused on efficient procurement and operational excellence to deliver a Revenue of Rs. 811Mn (YoY +233%), Gross profit of Rs. 545Mn (YoY +319%) and Profit after tax of Rs. 243Mn (YoY +2,026%), surpassing the previous quarter's performance.
Investment Sector
The Investment Sector remained steady, recording a revenue of Rs. 1.7Bn (YoY +85%) and a Profit after Tax of Rs. 295Mn (YoY +425%), with the main contribution coming from the export operation.
The portfolio strategy of moving into high-margin products with less volatility drives the sector's growth.
The IT business too, is gaining ground with improved contributions to the Group's overall performance.
Cashflow & Gearing
Increasing emphasis on working capital management and cash conversion, Expolanka was able to improve cash from operations to Rs. 110Bn, settling Rs. 67Bn in debt and reducing its gearing ratio to 27%.
Social Consciousness & Governance
Expolanka continued to place emphasis on Environmental, Social, and Governance (E S G) initiatives, with several proactive initiatives and projects aligned with its overall strategic objectives.
The Company also launched Yahaguna Padanama, a foundation focusing on spreading love and goodness with the aim to put fewer families at risk of hunger.
The Foundation provides over 250 healthy meals a day for the less privileged traveling to Colombo for medical treatment.
As a responsible and socially conscious employer, Expolanka continued to place attention on employee welfare and wellbeing particularly on the domestic front, as the country and the company adopted to the challenging environment.
Carrying on from the initiatives undertaken under the Global Goodness banner, the business continued to drive attention towards implementing programmes across the UN Sustainability Goals, green logistics, and women’s empowerment initiatives.
Outlook
The global macro environment continues to be volatile with market conditions remaining uncertain, with visibility and predictability remaining challenging.
Expolanka has demonstrated its capabilities to remain agile and adopt to these challenging conditions in the past.
The Company will remain unwavering in its approach to delivering on its strategic initiatives whilst adjusting to market challenges.
The focus will remain on the long-term as the organization looks towards the future, building capabilities, infrastructure and systems to face an ever-changing and evolving global environment with the single focus of creating sustainable value for all stakeholders.
Expolanka Holdings PLC has built successful businesses globally, from EFL Global being recognized among the Top 25 Airfreight Forwarders and Top 35 Ocean Forwarders in the world, to establishing one of Sri Lanka's most premier travel brands, Classic Travel.
The Company stands committed to creating long term sustainable value for all its stakeholders by engaging and managing its business operations with this goal in mind.