Expolanka achieves record 1st half FY 2021/22 performance with 190% revenue growth

Expolanka Holdings PLC, whose performance surged during the COVID-19 pandemic, has once again reported exceptional results for the second quarter of the financial year driven by the continued growth of its logistics business which has a global reach.

For the quarter ended 30 September 2021 (Q221), Expolanka recorded a Profit After Tax of Rs. 12 billion, a 166 percent increase Year on Year (YoY). Revenue for the quarter was Rs. 151.4 billion marking a YoY increase of 208 percent. Its Gross Profit was Rs. 22.6 billion for the quarter, a 114 percent increase YoY, it said in a statement.

“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,” it said.

In his quarterly message to stakeholders, 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 percent increase YoY) and Rs. 12.1 billion Profit After Tax (157 percent increase YoY).

It 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.

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.

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 near shoring 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 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 Mn (206 percent growth YoY) despite bleak external conditions, by adapting its business portfolio to the new travel normal. The Investment sector generated a revenue of Rs. 1 billion (58 percent 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.