Aitken Spence posts 388% growth for 2Q | Sunday Observer

Aitken Spence posts 388% growth for 2Q

21 November, 2021
MD Dr. Parakrama Dissanayake 
MD Dr. Parakrama Dissanayake 

Aitken Spence PLC reported an impressive growth of 388% from its earnings before interest expense, tax, depreciation and amortisation (EBITDA) of Rs. 2.9 bn compared to Rs. 595 mn in the 2Q of the previous year.

During the 2Q the Group’s non-tourism sectors recorded a growth of 35% from its EBITDA of Rs. 2 bn against Rs. 1.5 bn during the 2Q of the previous year. The Group’s tourism sector reached a significant triple digit growth of 188% from its EBITDA of Rs. 824 mn as against a loss of Rs. 940 mn during the 2Q of the previous year.

The Group’s maritime and freight logistics sector contributed the highest profitability with improved performances from the Cargo GSA, freight forwarding and overseas port management operations. The sector recorded a 57% increase in profit-before-tax (PBT) for the six months ended 30th September 2021. The Group’s strategic investments sector recorded a compelling performance driven by a triple digit growth of 107% in PBT for the six months ended September 30, 2021. The newly commenced waste-to-energy power plant and the recently acquired Waltrim mini-hydro power plants enhanced the profitability of the sector alongside the plantations segment that provided a substantial boost to the Group’s strategic investments sector. The plantations segment commenced commercial production of strawberries with three other varieties of berries to be launched under the brand “Berry Much”.

The Group’s services sector recorded an 83% growth in PBT led by the money transfer and elevator agency operations.

The Group’s tourism sector showed a significant improvement as they recorded a decrease in losses of 54%. The hotels segment in the Maldives witnessed higher occupancy volumes and is on an encouraging trajectory. Aitken Spence has been reinventing its businesses with their priorities focused on re-strategising its operations and business models while strengthening resilience. With this objective, the Group embarked on a business and process transformation drive across all business segments in early 2020, prior to the downturn effects from the pandemic. The results have been reassuring as it has increased productivity whilst eliminating redundant and protracted business processes, enabling greater motivation for employees with relevant upskilling where necessary.

The Group recorded a growth of 156% in Profit-Before-Tax (PBT) of Rs. 734 mn during the 2Q of 2021 compared to a loss of Rs. 1.3 bn in the 2Q of the previous year. This is an outstanding performance considering the downturn in the tourism business. The non-tourism sectors reported a PBT of Rs. 1.4 bn for the 2Q and Rs. 2.7 bn for the six months