Expolanka goes to US
View(s):Expolanka PLC (Expo) has set its footprint in the US as a part of its foreign expansion plan, officials said.
Expo’s logistics arm, Expo Freight Ltd (EFL) opened shop last month in four cities in the US, Hanif Yusoof, CEO Expo told the Business Times.
“We opened offices in Miami, Los Angeles, Atlanta and Colombus in August,” he said noting that these will service their US customers.
Expolanka Group delivered a revenue of Rs. 15.8 billion for the last quarter reflecting 6 per cent increase year on year (YoY) while delivering a profit of Rs. 252 million. The profit attributed to the equity holders for the first quarter of FY 2017/18 stood at Rs. 204 million reflecting a 12 per cent increase YoY.
In this period the Air Export Vertical grew by 18 per cent in line with the trend seen over the last several years. The renewed efforts on Ocean Export operation resulted in a volume growth of 36 per cent, which was the catalyst in the group recording a revenue of Rs. 14.6 billion for the quarter (up by 18 per cent YoY) but the pressure on yields globally continued to effect the overall profitability of the sector, reporting a profit of Rs. 321 million (drop by 18 per cent YoY), Mr. Yusoof said.
The North America trade lane of EFL faced a marginal drop in volumes which was further accentuated with reduced yields resulting from increased buying pressure due to peak season. European trade continued its trend of healthy performance in volume growth delivering a volume growth of 47 per cent within the Air Export segment. The Intra Asia Trade lane maintained its consistent performance and recorded growths within the Air Imports segment.
“Whilst all stations contributed to the growth in volumes, the performance of certain key stations was impacted due to the pressure on yields, particularly the Far East and South Asian markets. From an overall perspective, maintaining margins remain constant challenges as pressure on yields continue to remain,” Mr. Yusoof has said in a statement.
He told the Business Times that the divestments from certain passive investments enabled the investments sector to be more balanced. “We will continue to gain efficiencies whilst looking at opportunities to exit from the remaining passive investments.”
In this light, Expo shed Amana Bank PLCs 90,281,006 shares on June 28.
Mr. Yusoof noted that the plan next is to start offices in Europe. “We want to move with the brands.”
Barca Global Master Fund which was Expo’s main foreign buyer recently had 6 per cent in Expo in March this year. Matthews Emerging Asia Fund has also increased its stake in Expo during 4Q17.
The group is on a restructuring process aimed at moving away from a conglomerate to a logistics and leisure driven model.