Fueled by surging demand for emergency supplies via air freight into North American markets, Group Revenue expanded by 71% Year-on-Year (YoY) to Rs. 49.1 billion while Group Profit After Tax (PAT) registered an outstanding Rs 4.5 billion for the quarter under review.
Growth in the logistics sector was attributed to key strategic initiatives undertaken by the company in addition to its ability to pivot to opportunities in the market, particularly in response to the need for emergency medical supplies and Personal Protective Equipment (PPE) essential to combatting COVID-19 on extremely tight schedules.
With economies tentatively opening up, regular business was starting to return by the end of the quarter while PPE orders were gradually easing.
However, the company stands fully geared to service new opportunities which may present itself in such an evolving environment.
Lower volumes of freight during Q1 and the initial weeks of Q2 were largely offset by a spike in Airline rates, leading to the Group’s logistics sector recording a 76% YoY increase in revenue up to Rs. 48 billion.
The impressive growth in the Air Freight market has displayed signs of a return to normalcy and the company is mindful that yields are likely to taper off as market conditions stabilise in the coming months.
Activity across Europe and Intra Asia Trade Lanes remained fairly muted, however these conditions were largely offset by surging demand from North American trade lanes - the largest contributor of business.
The Company’s 3PL business continued to record healthy growth.
Enhanced agility across sales, procurement and origin operations enabled the group to operate in the most efficient manner.
This was augmented by the group ERP platform, which utilised automation and standardization to enhance operational capabilities.
A key factor in the success of the company’s logistics business has been its customer centricity, which it further enhanced with technological capabilities, while providing visibility to customers and securing greater efficiency across the breadth its operations.
Like all of its industry peers, the performance of Expolanka’s leisure sector was significantly impaired during the quarter as the pandemic forced the prolonged closure of airports and the institution of travel bans across the globe.
Consequently, the sector redirected its focus towards restructuring business operations with a view to optimize opportunities when normalcy returns, while exploring new opportunities in serving innovative and experiential travel requirements emerging from a post-COVID landscape.
Over the short-medium term, these will include a greater emphasis on serving the domestic market, while restructuring the business in order to remain lean and efficient.
Meanwhile, the Group’s investment sector generated revenue of Rs 635 million, driven primarily by its support for export operations.
Similarly, its technology services company, ITX, was also able to secure encouraging and stable growth during the quarter in review.
The company remains vigilant towards uncertainties in the business environment, following through on long term strategy, managing operations proactively, and maintaining open lines of communication with customers and business partners.
About Expolanka Holdings
Expolanka Holdings PLC is a leading conglomerate in Sri Lanka and part of the SG Holdings Group, a leading logistics group in Japan.
With interests in Logistics, Leisure and Investments, the company has successfully expanded its presence to cover 23 countries and 60+ offices across Asia, Africa, Europe, Middle East and USA.