‘Expolanka Holdings navigates Q4, FY24 results with resilience and agility despite turbulent times’

Expolanka Holdings PLC announced its financial results for the fourth quarter and full year ended March 31, 2024, demonstrating resilience in the face of a volatile macro environment, sustained by its agility and strategic focus.

For the quarter ended March 2024, the company reported Revenue of Rs. 66.0 billion, Gross Profit of Rs. 12.8 billion, and a Net Loss of Rs. 5.3 billion. For the twelve months that ended on 31, March 2024, the group reported Revenue of Rs. 249.9 billion, Gross Profit of Rs. 47.1 billion, and a Net Loss of Rs. 17.6 billion.

Importantly, the company also announced the delisting of its ordinary shares from the Colombo Stock Exchange on 1st March 2024 and received approval from shareholders at an Extra Ordinary General Meeting (EGM) held on the 27th of March 2024. The company is now seeking approval from the Securities and Exchange Commission of Sri Lanka (SEC) to proceed with the delisting process.

The global economy faced multiple shocks over the past two years, including tightening monetary policies, persistent inflation, trade protectionism, high energy prices, and geopolitical tensions. The World Bank’s January 2024 report predicted global growth would slow to 2.4% in 2024 – the third consecutive year of deceleration – due to ongoing macroeconomic conditions, resulting in operational challenges and tepid financial performance for EFL Global.

In its logistics business, EFL Global experienced a decline in Air Freight and Ocean Freight volumes due to low imports and slowing consumer demand. This also led to reduced revenue from complementary services such as drayage and warehousing.

On the supply side, Air Freight rates remained steady during the quarter following volatility during the first 3 quarters of the year. Air Freight Yields were static but well below the prior year. Ocean Freight rates increased due to disruptions in the Red Sea, but yields remained unchanged as rate hikes stemmed from higher premiums like insurance. Ocean Yields saw a significant reduction compared to the previous year. Profitability declined across Air and Ocean Freight, with Ocean Freight more impacted by yield adjustments.