Building on strong momentum in Q3, Expolanka posted a 23.7% Year-on-Year (YoY) expansion in Company revenue up to Rs. 18.7 billionin Q4, enabling substantial improvements in group turnover for the financial year, which increased by 22% YoY up to Rs. 77.5 billion.
As in previous quarters, Expolanka’s topline growth in Q4 was primarily driven by the logistics sector the implementation of concerted strategies aimed at driving growth in its operations.
During the period in review, the company was able to generate a Gross Profit of Rs. 4.1billion, representing a positive 51% YoY improvement which also resulted in a 22.5% YoY increase in Annual Gross Profits up to Rs. 13.2 billion. Strong top-line performances also enabled the group to post a Profit after Tax (PAT) of Rs. 372 million for the quarter up by 30% YoY, while annual PAT stood at Rs. 962 million, in line with company’s expectations for the year.
The Logistics sector, which stands as the key driver of the group performance contributed Revenue of Rs. 17.8 billion, reflecting a 32% YoY improvement, while generating annual revenue of Rs. 72.9 billion, reflects growth of 34%YoY. The sector’s sustained performance during the year was largely a result of concentrated and focused efforts in increasing volumes, enhancing products and solutions across trade lanes.
Consequently, the logistics sector was able to generate a Gross Profit that was 58% YoY greater, closing the quarter in review at Rs. 3.7 billion. The sector recorded an annual gross profit of Rs.12.4 billion, up by 28% YoY. The group further witnessed its GP margins improving over the last two quarters ending the year at 17.1% in line with margins recorded last year. The improvement in margins was a result of sustained efforts undertaken by the company to improve its procurement function.
The improvements in margins coupled with focused efficiency initiatives enabled the sector to generate a PAT of Rs. 522 million for the quarter (growth of 17% YoY).
The performance for the current year was driven by the growth in volumes across all key products with Air Freight operations contributing significantly towards the growth of the business. Ocean Freight operations too continued its positive growth trends tracking strong growth numbers.
All key trade lanes performed to expectation during the quarter with the business being able to substantially consolidate its South Asia & East Asia operations.
The Warehouse operations continued to show improvements delivering sustainable earnings driven by a focus on building operating scale and efficiencies.
Expolanka’s Leisure sector continued to extend its strong performance during the quarter posting a turnover of Rs. 324 million and gross profits of Rs. 296million to conclude the quarter with a PAT of Rs. 21 million and a YTD PAT of Rs. 169 million. Moving forward, the brands within the sector aim to maintain its focus on core operations complemented by a wide range of value added services.
Meanwhile, the group’s investment sector, which includes the group’s perishable export operations, contributed a further Rs. 603 million towards group turnover.
The sector recorded a loss during the quarter primarily attributed to the cost of shared services provided by the corporate office, which functions as a strategic and support service centre to the group.