Expolanka Holdings record steadfast performance for Q2 FY22

Expolanka Holdings PLC delivered a resolute performance amidst a challenging operating environment for the quarter ending 30th September 2022 with a Revenue of Rs. 161.7Bn (YoY +7%), Gross Profit of Rs. 28.3Bn (YoY +25%) and Profit after tax of Rs.9.0Bn (YoY -25%). This resulted in the Company delivering a YTD Revenue of Rs. 396Bn (YoY +61%) and Profit after Tax of Rs. 29.2 Bn (YoY +59%).

During the quarter, the Company focused on maintaining performance stability whilst building infrastructure and capabilities for future growth. Earnings from international operations continued to remain above 95% as Expolanka Group consolidated its performance during the quarter.With these results, the Company was able to generate an EPS for the quarter of Rs. 4.63.

Global markets remained disrupted during the quarter resulting in a slowdown. Whilst the pandemic-led demand surge has subdued, pressure on capacity has gradually eased, resulting in reduced freight rates.

The logistics sector navigated through these challenges as the business delivered a Revenue of Rs. 159.3Bn (YoY +6%), Gross Profit of Rs. 27.6Bn (YoY +23%) and Profit after Tax of Rs. 8.5Bn (YoY -30%) for the quarter under review. The above resulted in the sector delivering a YTD Profit after Tax of Rs. 27.3Bn, returning growth of 45% YoY.

Soft demand conditions have resulted in Air Freight volumes tailing off during the quarter. However, intense sales efforts supported by solid service capabilities enabled EFL to mitigate these impacts. The quarter under review saw Air Freight rates softening gradually, resulting in yield moderation.The Company has consolidated progress on the Ocean Freight product by focusing on increased customer penetration, developing partner networks and enhanced competencies. Although volumes have lowered during the quarter, it has occurred at a relatively reduced pace. Ocean rates remain tempered during the quarter with corrections in yields.

Despite market challenges, Expolanka has remained consistent and accurate in its long-term multi-pronged strategy of growing volumes, building capacity and enabling operational efficiencies.

The North American trade lane remained the critical business driver; the European and Intra-Asia companies remained resilient with stable growth during the quarter.EFL continues to make inroads into domestic logistics services in its core markets as the business complements its value offering to its customers by enhancing capabilities in all core markets.