Aitken Spence PLC remained resilient despite two black swan challenges due to the Group’s diversified business portfolio and strategic direction. The Group’s financial performance for the twelve months ending March 31, 2020 recorded a year-on- year profit-before-tax of Rs. 4.2 billion compared Rs. 7.3 billion last year.
Despite considerable economic headwinds the organisation’s agile strategy was reflected in the earnings from the overseas businesses that contributed 39% compared to 43% last year. This underlined the exceptional relationships that have been built with global industry players across the key sectors. The Group’s businesses from the domestic market derived 61% earnings of the Group’s PBT for 2019/2020 compared to 57% in the previous year.
The total revenue of the Group ending March 31, 2020 was Rs. 53.5 billion, a 4% drop from the previous year, primarily due to a reduction of revenue from the Tourism sector which was affected by the significant impacts mentioned above. However, the drop was compensated by the commencement of the operations during the third quarter of the year of Heritance Aarah, the flagship hotel in the Maldives.
The total assets of the Group increased by 14% to Rs. 140 billion. The Group invested Rs. 10 billion in capital expenditure across many sectors with the highest investment incurred in the power generation segment to fund the construction of the pioneering waste to energy power project, the first of its kind in Sri Lanka.
The Group’s expansion increased to 9 countries as the Maritime & Freight Logistics sector re-established its presence in South Africa whilst the Tourism sector commenced operations in Myanmar during the year.
The launch of Heritance Aarah was a key milestone in the Tourism portfolio as it was the first time that the Heritance brand was launched overseas.
The Tourism sector recorded a loss before tax of Rs. 15.3 million compared to a profit of Rs. 3.1 billion last year. Heritance Kandalama and Heritance Tea Factory made profits despite the setbacks. Aitken Spence Travels handled around 14% of organised tourist arrivals to country underlying its position as the market leader and providing a healthy contribution to the Group and the country, to accelerate and strengthen the recovery of this key economic sector.
The Maritime & Freight Logistics sector contributed an outstanding profit before tax of Rs. 2.25 billion which was once again the largest contributor accounting for 54% of the Group profits.
The Sri Lankan operations of the Maritime & Freight Logistics sector also recorded an increase in operating profits despite a significant decline in trade volumes due to global trade tensions and import restrictions. To page 10
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