Aitken Spence non-tourism sectors record highest ever pre-tax profit
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Deputy Chairman Dr. Parakrama Dissanayake
The Aitken Spence Group recorded a loss before tax of Rs. 2.8 billion for the year ending March 31, 2021 with the tourism sector reporting a loss of Rs. 7.8 billion for the year during a turbulent period affected by the unprecedented COVID-19 pandemic.
However the group’s non-tourism sectors delivered the highest ever profit before tax of Rs. 5.01 billion compared to Rs. 4.2 billion last year and partially offset the impact of the group’s tourism portfolio which recorded its worst year ever due to the devastating impact of the pandemic, the company said in a media release.
The group’s non-tourism sectors overcame multiple challenges including business disruptions, health and safety risks faced by the staff and the overall slowing down of economic activity to record a growth in profit before tax of 55 percent in the fourth quarter and 18.9 percent in the financial year, compared to the corresponding periods in the previous year.
The Maritime and Freight Logistics sector which has operations across five countries contributed 51.2 percent of the group’s non-tourism profit before tax by recording Rs. 2.6 billion which is a growth of 13.9 percent year-on- year. This is despite the overall decline in trade volumes during the year.
The Strategic Investments sector was the second highest contributor towards the group’s performance with a profit before tax of Rs. 2.1 billion, up by 23.3 percent year-on-year. The country’s first ever waste-to-energy power plant commenced in February 2021 with a healthy contribution during these months of operation.
“The Services sector performance was commendable recording a profit before tax of Rs. 392 million which is a growth of 31.8 percent year-on-year,” it said.
The group led the revival of the tourism sector in Sri Lanka and significantly contributed towards the recovery through facilitation of the first of the charter flights to Sri Lanka since the reopening of the airports on 21st January 2021, from unconventional markets such as Kazakhstan. The group accounted for over 35 percent of the total arrivals to Sri Lanka from the date of reopening of airports to the end of the financial year.
“During yet another challenging year, Aitken Spence has been reinventing its businesses and our priorities are focused on re-strategising our operations and business models while strengthening resilience. With this objective, the group embarked on a business and process transformation drive across all business segments,” said Dr. Parakrama Dissanayake, Deputy Chairman and Managing Director of Aitken Spence PLC.