Expolanka raises the bar yet again with record 1H performance
2Q revenue up 208% to a staggering Rs. 151.4 b; PAT up 166% to Rs. 12 b
Full FY21 performance already surpassed in current FY 1H
FY22 1H revenue up 189% to Rs. 247.15 b versus Rs. 218.7 b
in full FY21
FY22 1H after tax profit up 192% to Rs. 18.3 b versus Rs.
14.8 b in full FY21
Expolanka says outlook for the North American market remains
steady for the next several months and expects European and Asian markets to
open up gradually
Most valuable and profitable corporate, Expolanka Holdings
PLC, has raised the bar yet again with a record first half performance,
pointing to a likely new Sri Lankan corporate benchmark by the year’s end.
For the quarter ended 30 September 2021 (Q221), Expolanka
recorded a Profit After Tax (PAT) of Rs. 12 billion at a 166% increase
Year-on-Year (YoY). Revenue for the quarter was Rs. 151.4 billion marking a YoY
increase of 208%. Its Gross Profit was Rs 22.6 billion for the quarter, a 114%
increase YoY.
For 1H, Expolanka revenue grew by 189% to Rs. 247.15 billion
and PAT rose by 187% to Rs. 22.3 billion. In FY21, full year revenue was Rs.
218.7 billion and PAT was Rs. 14.8 billion.
Although the macroeconomic and external environment remained
dynamic during this period with continued supply chain disruptions, Expolanka
stayed focused on the core fundamentals of its business operations, delivering
strong volume growth whilst adopting proactive procurement strategies and
pursuing operational efficiencies.
In his quarterly message to stakeholders, Expolanka Holdings
Group CEO Hanif Yusoof said: “The continuous success achieved by the company is
a reflection of our ability to execute well-defined strategic initiatives
effectively whilst remaining agile and nimble amidst this dynamic external
environment.”
He noted that the company was now a truly global
organisation with a geographic footprint covering 32 countries, with a majority
of business generated from leading international clients outside of Sri Lanka.
In its Logistics business, the sector recorded its best
quarterly performance with a record quarterly revenue of Rs. 150.2 billion
(210% increase YoY) and Rs. 12.1billion PAT (157% increase YoY).
In its interim results statement, Expolanka said a holistic
approach to business has been the hallmark of success for the company; an
aggressive sales strategy was well supported by a cohesive network-wide
approach aimed at service delivery and securing capacity, which aided in
generating healthy yields.
Significant growth in volumes was witnessed across air
freight and ocean freight products offered by the company. Expolanka tapped
into this demand whilst also benefiting from the gradual recovery of global
trade, bringing in new strategic customers supported by enhanced services
across the supply chain.
The company currently services leading global brands across
a variety of key growth verticals.
In its air freight product, Expolanka saw increased volumes
from several strategic customers across multiple industry verticals by meeting
customer demands effectively and efficiently, thus keeping to its brand promise
of growing business and transforming supply chains.
Efforts by EFL Origins in ensuring uninterrupted services
despite certain markets undergoing strict lockdown measures further augmented
its capabilities to operate in a disrupted environment. Similarly, the ocean
freight product also grew during this quarter as a result of increased customer
penetration and a growing partner network.
Expolanka said the enhancement of origin capabilities in Sri
Lanka, India, Vietnam, China and new markets such as Malaysia and Thailand, was
a result of the company building infrastructure and capabilities in these markets.
EFL also carried out several charter operations during the
quarter under review – further evidence of the company’s agile operating
capabilities in a disrupted environment to meet customer expectations. The
North America Trade Lane continued to deliver extraordinary growth, whilst the
European and Intra Asia Trade Lanes experienced stable growth.
EFL completed two key acquisitions during the quarter under
review. The company acquired IDEA Logistics LLC, a US-based central American
logistics company, to fulfil emerging opportunities in relation to nearshoring
strategies adopted by US brands. This acquisition is also part of the company’s
overall long-term geographic expansion plans to be present in key growth
markets. EFL’s own business in the region has steadily grown over the last few
years, and the acquisition enables the company to entrench itself in this
market thus consolidating its service capabilities to customers in this market.
EFL also concluded the acquisition of Complete Transport LLC, a bonded CFS and
trucking company in New York, thus complementing its previous acquisition of
Seville (another trucking company based in New York) which will enable the
company to secure presence, capabilities, and infrastructure in all key trade
gateways in North America.
In the Leisure sector, Expolanka remained resilient
generating a revenue of Rs. 244 million (206% growth YoY) despite bleak
external conditions, by adapting its business portfolio to the new travel norm.
The Investment sector generated a revenue of Rs. 1 billion (58% growth YoY)
driven by exports and a strategy of moving into high margin products with less
volatility. The IT business also gained ground during the quarter with improved
contribution to the overall growth of the group.
The company also continued to place significant emphasis on
its environment, social and governance framework by adopting proactive
practices aligned with overall strategic initiatives. During the quarter,
Expolanka continued to support the healthcare sector with donations of critical
healthcare equipment to various hospital networks in the country. In addition,
it stayed true to its commitment to the UN’s Sustainable Development Goals and
its own green logistics drive, participating in several global initiatives.
Expolanka noted that the company expects the outlook for the
North American market to remain steady for the next several months and for the
European and Asian markets to open up gradually. The pandemic has resulted in
long term changes in consumer behaviour, with evolving market conditions and
nimble supply chains, noted Yusoof.
“As a company, Expo will stay agile in meeting these
challenges and leveraging strategic new opportunities with the single focus of
creating value for our stakeholders,” he said.
He credited the company’s organisational culture for
enabling Expolanka to continue its strong upward momentum, noting that
leadership focus on people-driven growth contributed to the record growth
numbers recorded during this quarter, which led to the company surpassing its
revenue from the last year during the first six months of this financial year.
Source Dailyft
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