Aitken Spence achieves 44% growth in 3Q | Sunday Observer

Aitken Spence achieves 44% growth in 3Q

28 February, 2021

Aitken Spence PLC non-tourism multi-industry sectors reported a Profit-Before-Tax (PBT) of Rs. 1.3 bn in 3Q, a growth of 44% compared to the previous year.

These sectors also reported an EBITDA (Earnings Before Interest Expense, Tax, Depreciation and Amortisation) of Rs. 1.7 bn compared to Rs. 1.4 bn of EBITDA recorded during the third quarter of previous year.

The overall contribution from the non-tourism sectors was notable during the second lockdown period. Companies in the maritime and freight logistics, power, money transfer, elevator agency, printing and packaging, and plantation sectors performed exceptionally well compared to last year with an increase in PBT for the quarter while maintaining positive performance during the nine months ending t December 31, 2020. 

Outstanding performance was seen from the strategic investments sector that recorded a profit before tax growth of 248%. The Group’s plantations segment recorded  substantial profit growth. During the quarter Elpitiya Plantations PLC clinched the award for Best Integrated Report - Plantations sector at the CMA Excellence in Integrated Reporting Awards 2020. The company was also presented with a certificate of Merit.

The printing and packaging segment recorded an improvement in its performance generating healthy profits during the quarter compared to the negative returns generated in the third quarter of the previous financial year. Furthermore, the maritime and freight logistics sector also performed remarkably to record a 10% increase in profits before tax for the period. 

The Group’s tourism sector EBITDA for 3Q was a loss of Rs. 447.2 mn. However, subsequent to the reopening of Maldives, the hotels segment is gradually recovering alongside the local tourists handled by the Sri Lankan tourism sector. Amidst many challenges, Aitken Spence Hotels were awarded at the prestigious Luxury Lifestyle Awards - Heritance Aarah (Maldives) named the winner in the category of the Best All-Inclusive Resort in Asia and Desert Nights Camp (Oman) winner of the Best Luxury Hotel in Oman. 

The destination management arm of the Group Aitken Spence Travels recently facilitated the first of many weekly charter flights from Kazakhstan, an arrangement that will continue until April and which is expected to generate significant foreign exchange earnings to the country.  

 The Group recorded a loss of Rs. 0.2 bn from operations for the third quarter compared to the profit from operations of Rs. 1.8 bn recorded in the same quarter of the previous year. The Profit-Before-Tax (PBT) for the third quarter was a loss of Rs. 0.5 bn compared to a profit of Rs. 1.2 bn in the previous year, which was due to the pandemic weighing on the tourism sector.