Strong growth from Aitken Spence in 1Q from non-tourism sectors
View(s):Aitken Spence PLC has made a comeback in the first quarter ending 30th June 2021 by recording a 145 percent increase in Profit Before Tax (PBT) of Rs. 1.2 billion compared to Rs. 513 million in the previous year from the non-tourism sectors, the company said in a media release.
The group’s non-tourism sectors recorded a 96 percent increase in EBITDA (Earnings-inclusive of equity accounted investees, before interest expenses, tax, depreciation and amortization) of Rs. 1.9 billion compared to Rs. 990 million in the previous year.
The non-tourism sectors include companies in the maritime and freight logistics, renewable energy, elevator agency, money transfer services, printing and packaging, plantations, apparel, insurance and maritime education and management segments.
The release said the group’s revenue for the quarter increased by 54.5 percent to Rs. 8.5 billion compared to Rs. 5.5 billion in the previous year while the Loss Before Tax (LBT) for the quarter decreased by 79.6 percent to Rs. 467.3 million compared to Rs. 2.3 billion in the previous year. “The group’s profits from operations increased by 104 percent which is a notable improvement to record a profit of Rs. 72 million compared to a loss of Rs. 1.7 billion in the previous year’s quarter,” the release said.
The tourism sector showed promising results with an increase in revenue and reduction in losses during the first quarter. One of the main contributing factors was the overseas hotels in Maldives which were operational during the first quarter. The group’s tourism sector recorded a loss of Rs. 1.7 billion which was notably lower than the previous year’s loss of Rs. 2.8 billion.
“We are extremely proud of our hard-working teams across the group who have shown their true grit through purposeful leadership that has led to outstanding results despite being in industries that are heavily impacted by the pandemic that continues to hamper business growth. We remain cautiously optimistic for a stronger recovery in the group and particularly in the tourism sector than achieved during the first quarter,” said Dr. Parakrama Dissanayake, Deputy Chairman and Managing Director, Aitken Spence PLC.