Aitken Spence records strong performance with EBITDA of Rs. 7.8 Bn for 3Q 2023/24

The leading blue-chip conglomerate, Aitken Spence PLC reported an EBITDA (earnings before interest cost, tax, depreciation, and amortisation) of Rs. 7.8 billion for the third quarter of 2023/24, a growth of 11.8% over that of the third quarter of the previous year. The Group’s EBIT (Earnings before total interest) for the quarter stood at Rs. 5.3 billion which was a year-on-year growth of 20.7%.

The Group achieved a Profit Before Tax (PBT) in the third quarter of 2023/24, nearly doubling that of the same period of the previous year, reaching Rs. 3.4 billion, while the cumulative first nine months PBT stood at Rs. 1.7 billion.

The rise in quarterly profits was primarily driven by a 15.0% surge in revenue, reaching Rs. 30.7 billion for the period September to December 2023. The notable growth was predominantly observed in the tourism sector, which experienced a year-on-year increase in revenue of 40.3%.

The Group’s Tourism sector was the highest contributor towards the overall EBITDA in the quarter recording Rs. 5.1 billion, with the Maritime and Freight Logistics sector following with an EBITDA of Rs. 1.3 billion. The Group’s Strategic Investments sector and Services sector demonstrated consistent performance throughout the quarter as well.

The Group’s Tourism sector experienced a marked improvement in performance, in Sri Lanka attributable to the surge in tourist arrivals to the country by 143%, resulting in an increase in occupancy rates in the local hotels and the number of tourists handled by the destination management company. The Maldives too witnessed an increase in tourist arrivals during the quarter enhancing the results of the Maldives resorts.

The Group’s Maritime and Freight Logistics sector though significantly contributing towards the bottom line; faced challenges as global freight rates declined, compounded by the adverse effects of the LKR’s appreciation. This situation affected a significant portion of the sector’s businesses, given that many of the sector’s business activities are conducted overseas or are linked to the USD and other foreign currencies.

In November-December 2023, Aitken Spence PLC joined the Sri Lankan delegation to COP 28 as private sector sponsors. For the first time, the Ministry of Environment opened the national delegation attending the conference of parties to the UN Framework Convention on Climate Change (UNFCCC) to include youth, NGOs and private sector sponsors as participants.

Accordingly, Aitken Spence supported this effort and made a presentation on private sector’s role to achieve Sri Lanka’s Nationally Determined Contributions (NDCs) and hosted a panel discussion on accelerating the private sector’s action towards climate ambitions in Sri Lanka.

Furthermore, Aitken Spence is the first conglomerate in Sri Lanka to join the Science Based Targets initiative (SBTi), committing to work towards net zero status of emission. During the quarter the company focused on building necessary capacity and awareness to develop their net zero pathway.

Listed in the Colombo Stock Exchange since 1983, Aitken Spence is anchored to a heritage of excellence spanning over 150 years and driven by a team of more than 13,000 across 16 industries in 10 countries: Sri Lanka, Maldives, Fiji, India, Oman, Myanmar, Mozambique, Bangladesh, Cambodia and Singapore.