Expolanka Holdings PLC has made some strategic investments in the year gone by (2011/12 end March) acquiring the controlling 50 % stake in an investment of Rs 300 million in Norfolk Foods and purchasing a 22.73 %stake in Amana Takaful Maldives which was ubsequently listed on the Maldives Stock Exchange, the company said.
The company also recently took control of an Indian-based destination management firm which has a large outreach in key source majors like India, Russia and China, which Expolanka will also manage.
The company sustained its consolidated NPAT (net post-tax profit for the FY 2011/12 at Rs. 1.23 billion with a consolidated NPBT at Rs. 1.68 billion. The fourth quarter recorded a year on year growth of 21% in top line business, 33% growth in gross profit and 22% growth in pre-tax profit.
The Freight and Logistics Sector of the group recorded a PAT of Rs 1.11 billion which was up 5.3% from the earlier year. The other three key sectors
- Travel and Leisure, International Trading and Manufacturing and Investments and Services - contributed a PAT of Rs. 114 million to the Group.
Group CEO of Expolanka Holdings PLC, Hanif Yusoof said, "Our freight and logistics sector was challenged by the headwinds of global trading and intense competition. This impacted freight volumes and prices across the industry thus limiting the anticipated growth. Our strategy was volume driven. We proactively ventured during the early part of 2012 into new potential markets, Hong Kong, China and USA, sought after by our existing customer base as well".
He said the company's international trading arm was very susceptible to the uncertain conditions in the global trading arena. Exports, especially tea witnessed a dip led mainly by the political pressures that prevailed in its key market, the Middle East. Commodity imports were no less affected by the price volatility and volumes in this scenario. The company aimed at consolidating its existing product and customer base while seeking the best option in its value added range
In the future, Mr Yusoof sees the company and its network consolidating and reinforcing its entrepreneurship, seeking and turning adversity into opportunity in taking the business to the next level. "Our strategic focus especially on asset allocation wil be on bolstering our shareholder wealth. Return on equity will be our catalyst for growth. Our focus will mainly be on strengthening our existing operations and will aggressively think "out-of-the-box" to make a mark in terms of our brand identity, firm up our market share and leverage on our competiveness."