Expolanka Holdings PLC secured exceptionally strong top and bottom line growth during the quarter ended 30 September 2020 (2Q20), largely as a result of a focused and consistent strategy along with the ability to stay agile and optimize opportunities presented in a dynamic operating environment.
Fueled by surging demand for emergency supplies via air freight into North American markets, Group Revenue expanded by 71% Year-on-Year (YoY) to Rs. 49.1 billion while Group Profit After Tax (PAT) registered an outstanding Rs 4.5 billion for the quarter under review.
Growth in the logistics sector was attributed to key strategic initiatives undertaken by the company in addition to its ability to pivot to opportunities in the market, particularly in response to the need for emergency medical supplies and Personal Protective Equipment (PPE) essential to combatting COVID-19 on extremely tight schedules.
With economies tentatively opening up, regular business was starting to return by the end of the quarter while PPE orders were gradually easing.
Lower volumes of freight during Q1 and the initial weeks of Q2 were largely offset by a spike in Airline rates, leading to the Group’s logistics sector recording a 76% YoY increase in revenue up to Rs. 48 billion. The impressive growth in the Air Freight market has displayed signs of a return to normalcy and the company is mindful that yields are likely to taper off as market conditions stabilise in the coming months.
Activity across Europe and Intra Asia Trade Lanes remained fairly muted; however these conditions were largely offset by surging demand from North American trade lanes- the largest contributor of business. The Company’s 3PL business continued to record healthy growth.
Like all of its industry peers, the performance of Expolanka’s leisure sector was significantly impaired during the quarter as the pandemic forced the prolonged closure of airports and the institution of travel bans across the globe.
Consequently, the sector redirected its focus towards restructuring business operations with a view to optimize opportunities when normalcy returns, while exploring new opportunities in serving innovative and experiential travel requirements emerging from a post-COVID landscape.
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