Aitken Spence shows resilience with 17.5 per cent revenue hike in 1Q
View(s):In the aftermath of the devastating events of the April 21 attacks in Sri Lanka, the first quarter of 2019 for Aitken Spence was adversely impacted.
As the country copes with multiple challenges, Sri Lanka’s economic growth is forecast at 2.7 per cent in 2019. Overall, the performance of the services sector in the country declined to 4.1 per cent year-on-year, compared to 5.5 per cent GDP growth last year.
Among other industries, tourist arrivals to Sri Lanka in May 2019 recorded a drastic decline of 70.8 per cent from the arrivals in May of 2018.
Earnings from the country’s agricultural exports declined during the first five months of 2019 due to poor performance observed in tea, minor agricultural products and rubber exports.
Against this challenging macroeconomic backdrop, Aitken Spence PLC reported a 17.5 per cent growth in group revenue during the first quarter of the year at Rs. 12.4 billion compared to Rs. 10.6 billion recorded in the previous financial year.
In a media release, Aitken Spence said it continues to manifest its dominance in overseas markets that has generated approximately 75 per cent of the group’s overall profits in the first quarter of 2019 compared to 60 per cent in the first quarter of 2018. Overseas expansion, and thereby creating opportunities in local and overseas markets, is a vital aspect of the business strategy of Aitken Spence and it has strengthened the company’s resilience amidst a turbulent economic environment. At present, Aitken Spence has a presence in Asia, West Asia, South Pacific and Africa and the efficacy of this strategy is evident to date.
Profit-before-tax for the quarter was Rs. 475 million from Rs. 538 million over the previous year.
“Aitken Spence is a company that has proven that our strength is in our diversity. The devastation of the Easter attacks should motivate unity, resilience and continual progress. With normalcy being gradually restored, we are confident that business will bounce back, and our efforts will continue to this end,” said Dr. Parakrama Dissanayake, Deputy Chairman and Managing Director of Aitken Spence PLC.