Expolanka Holdings consolidates Q2 FY24 performance

Expolanka Holdings PLC have announced its financial performance for the quarter ending 30th September 2023, having successfully navigated through challenging market conditions, demonstrating resilience and adaptability while focusing on long-term strategy.

During the quarter under review, Expolanka Holdings reported a Revenue of Rs. 61.5 billion, with a Gross profit of Rs. 12 billion and a Net loss of Rs. 1.5 billion. For the first half of FY24, the company recorded a revenue of Rs. 117 billion, a Gross profit of Rs. 23.3 billion and a Net loss of Rs. 7.1 billion.

Persistent market challenges continued into the quarter, including high inflation, geopolitical tensions, protectionism, climate concerns and elevated energy costs, causing curtailed demand. The weakening in worldwide commerce due to uncertainty and inflationary pressures dampened consumer and business spending. The economic outlook remained clouded due to the complexity of issues weighing on global growth.

Performance for the quarter was driven by the logistics sector, having recorded a Revenue of Rs. 59.2 billion and a Gross profit of Rs. 11.3 billion. Air and ocean freight volumes declined due to low consumer demand and high retail inventory levels impacting the results. However, Expolanka’s strong customer relationships and network enabled it to maintain market share. The sector delivered a Revenue of Rs. 112.6 billion, a Gross profit of Rs 21.9 billion and a Net loss of Rs. 7.4 billion for the first half of the financial year.

In the period under review, low consumer demand and elevated retail inventory levels have led to reduced retail orders, impacting EFL’s volumes in both Air and Ocean portfolios. While freight capacity improved from its pandemic premium, the increase created excess capacity, causing a sharp decline in freight rates.

However, EFL Global has adapted to the challenging market conditions by maintaining close relationships with existing key accounts and actively pursuing new customers. Despite a decline in volumes due to reduced imports, the company’s strong network presence and customer-centric approach has enabled it to navigate the challenging times.

Expolanka’s strategic focus on enhancing the service portfolio and domestic logistics capabilities have also yielded positive results, with many customers benefiting from the offerings. Recent acquisitions, Trans American Global and the LEI Group, have met expectations, and integration efforts are progressing well.