Aitken Spence records its all-time high 1Q PBT of Rs. 7.2b

President DHS Jayawardena
Vice President and General Manager Dr Parakrama Dissanayake

Rooted in a legacy of excellence spanning more than 150 years with diversified business operations in eight countries, Aitken Spence PLC delivered a strong performance during the first quarter that ended June 30, 2022.

The conglomerate recorded a significant increase in its profit before tax (PBT) of Rs. 7.2 billion from a loss of Rs. 467 million a year ago. This is the best performance in the first quarter of the Group’s history despite the multiple obstacles linked to the current economic crisis.

The Group recorded a 553% increase in EBITDA (including profit of equity accounted enterprises, before interest expense, tax, depreciation and amortization) of Rs. 10.9 billion from Rs. 1.7 billion the previous year. Additionally, the group’s profit after tax increased to Rs. 6.3 billion from a loss of Rs. 683 million the previous year.

The Group’s Marine and Freight Logistics segment recorded PBT growth of 221.9% to Rs. line and the maritime higher education segment (CINEC).

The Group’s Strategic Investments segment recorded a PBT of Rs. Substantial foreign exchange recorded in the holding company contributed significantly to the profits of the sector.

The performance of the Group’s services sector was commendable, registering a PBT growth of 162.8% to Rs. 307 million with a strong contribution from the money transfer segment due to the flexible exchange rate.

The group’s tourism sector showed a strong recovery to register revenue growth of 205.9% to Rs. 10.1 billion as they recorded a sharp reduction in losses of 80.2% despite the prevailing conditions and fuel shortages which mainly impacted tourists traveling to Sri Lanka.

Amid these challenges, the Group’s tourism sector showed strong performance from some of its overseas hotels and destination management operations. The devaluation of the rupiah has also contributed substantially to increasing revenues and reducing losses for this sector.

Vice President and Managing Director, Dr Parakrama Dissanayake said, “In the midst of another extremely challenging quarter, the transformation and resilience strategies across the Group that are being executed by our hard-working teams have contributed to our solid performance in terms of turnover and results. As we continue our fight and move forward, we remain confident for a stronger recovery in the Group and in particular in the tourism sector.

Most recently, in July, Aitken Spence made a significant investment of Rs. 1.4 billion in renewable energy by acquiring a ground-mounted solar power plant that reiterates their commitment to local and global sustainability goals. This investment reinforces the Group’s commitment to achieve net zero emissions through renewable energy, as well as to enable access to clean energy and to contribute positively to the increase in energy demand.

Aitken Spence PLC is a leading conglomerate in Sri Lanka for over 150 years and led by over 12,500 employees in 16 industries in 8 countries: Sri Lanka, Maldives, Fiji, India, Oman, Myanmar, Mozambique and Bangladesh.

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