Aitken Spence PLC has reported, what it calls, “yet another sustained financial performance” for the 12 months ending March 2019 with a 13.8 per cent year-on-year growth in profit-before-tax from Rs. 6.4 billion to Rs. 7.3 billion, its highest ever. Sri Lanka’s leading conglomerate recorded a steady growth in several key sectors. The conglomerate capitalised [...]

Business Times

Aitken Spence outperforms industry with 13.8% growth in PBT in 2018/19

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Aitken Spence PLC has reported, what it calls, “yet another sustained financial performance” for the 12 months ending March 2019 with a 13.8 per cent year-on-year growth in profit-before-tax from Rs. 6.4 billion to Rs. 7.3 billion, its highest ever.

Sri Lanka’s leading conglomerate recorded a steady growth in several key sectors. The conglomerate capitalised on its broad-based business portfolio spread across several countries and sectors by recording an increase in its annual revenue by 5.6 per cent to Rs. 55.7 billion whilst recording the highest ever profit-after-tax of Rs. 5.8 billion, an increase of 12.1 per cent from the previous year. “The resilience of the group is demonstrated by the continuous growth in EPS which reflects the strength of the group to face turbulence in the domestic market and yet achieving sustained economic growth during this period, due to its overseas investments,” the group said in a statement.

Aitken Spence generated 44 per cent of its profits from businesses overseas; thus, spreading its wings across countries especially in the tourism, maritime and logistics sectors. As a result, the total assets of the group comprise 33 per cent accounted by assets overseas. This is an indication of the valuable relationships that have been built with global industry players in these key sectors.

The company also witnessed a growth in revenue from the overseas operations by 9.9 per cent to Rs.17.6 billion supported by good performances from the tourism, maritime and logistics operations, surpassing revenue growth in the domestic market. “The revenue increase in the Maldives is noteworthy as growth in room supply exceeded increase in tourist arrivals, leading to stiff competition in this attractive market,” it said.

Total revenue of the Sri Lankan operations also grew by 3.7 per cent to Rs.38.1 billion. This was created by significant improvement in tourism, maritime and logistics and services sectors despite a contraction in the strategic investments sector

Sri Lankan hotels performed extremely well recording a profit before tax of 40.3 per cent over the previous year, although there was an increase in room inventory in the country which created intensive competition. Moreover, the destination management business underlined its leadership position in the country by exceeding all expectations, resulting in a profit before tax of over Rs. 1 billion.

Maritime and logistics sector recorded a growth in profit of 20.9 per cent to reach Rs. 2.1 billion.

Overall, profit attributable to shareholders crossed the Rs. 4 billion mark for the first time to Rs. 4.1 billion, an increase of 14.5 per cent, while earnings per share (EPS) also rose from Rs. 8.77 to Rs. 10.04.

“Despite economic headwinds in key source markets and in their respective locations of operations, we have remained resilient and it is evident in the strong financial performance clearly seen across geographies and sectors. Our continued commitment to overseas expansion is evidenced by the investment of Rs.12.6 billion in Heritance Aárah in the Maldives as it becomes the first overseas operation to carry our premium brand Heritance which has been associated only with our iconic properties in Sri Lanka,” said Aitken Spence Deputy Chairman and Managing Director, Dr. Parakrama Dissanayake.

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