Excellent Expolanka ends FY22 with Rs. 694 b revenue, Rs. 73 b profit


Expolanka Holdings PLC yesterday raised the bar yet again announcing stellar results amidst global and local shocks, reinforcing its resilience and fruition of its recent strategies.

The Group posted a revenue of Rs. 242 billion (YoY + 220%), a Gross Profit of Rs. 46.0 billion (YoY + 287%) and a Profit after tax of Rs. 31.03 billion (YoY + 680%) for the quarter ending 31 March 2022.

The depreciation of the Sri Lankan rupee resulted in an exchange gain of Rs. 11.6 billion whilst increasing the company’s Net Asset Value by Rs. 26.5 billion on an YTD basis.

The fourth quarter performance boosted Expolanka’s annual revenue to Rs. 694 billion (+217%) and a PAT of Rs. 72.7 billion (+389%).

Over 95% of this revenue has been derived from international operations, reflecting the global nature of its business model and portfolio.

Expolanka also delivered an exceptional ROE of 95.9% as of March 2022, further indicating enhanced operating leverage and efficient asset utilisation strategies adopted by the group.

“The company was able to execute its strategic initiatives effectively whilst continuing to adapt to market conditions. Expolanka’s agile and unified approach has resulted in the group posting record results to conclude the financial year,” Expolanka Holdings Group Managing Director Hanif Yusoof said.

Expolanka’s logistics sector continued to deliver strong results during the quarter, maintaining its focus on growing volumes, whilst delivering stability in yields. The quarter in review witnessed the logistics sector delivering revenue of Rs. 240.9 billion (+221% YoY), a gross profit of Rs. 45.8 billion (+291% YoY) and a PAT of Rs. 29.9 billion (+561% YoY).

Yusoof said the business continued its multi-pronged strategy focused on volume expansion, proactive procurement, and efficient operational capabilities.

The customer-centric approach adopted by the company continues to focus on growing wallet share across strategic customers, whilst gaining traction with identified new customers. The diversified customer portfolio serviced by the company includes a multitude of leading global brands across a variety of key verticals.

The Air Freight product delivered significant volume during the quarter, with increased business from several strategic customers. EFL origins were able to augment the sales efforts by ensuring exceptional service delivery, capacity availability, and transparency.

The Ocean Freight product continued its strong momentum as a result of the increased emphasis on growing this portfolio. Increased customer penetration and a growing partner network enabled EFL to further strengthen and grow this product. The business was able to adopt several strategies to overcome challenges faced in the ocean freight business stemming from a shortage of containers, port congestions, and further backlogs caused by various other disruptions.

The proactive procurement strategy implemented by the business complemented the sales strategy adopted by the company to build capacity and stabilise margins. Strengthening existing relationships and building on new carrier relationships took centre stage for the procurement function as the organisation continued to develop its capabilities. The business utilised several charters and freighters during the quarter, to meet the demand requirements of customers effectively.

The macro-economic environment continues to remain dynamic. Demand supply imbalances largely remain, albeit not at the levels witnessed during the previous quarter. The freight rates are still at elevated levels, despite gradual correction witnessed during the quarter as a result of seasonal impacts.

Significant effort was dispensed in developing infrastructure, know-how, and capabilities across the EFL network. The global presence of EFL is a key competitive advantage in the company’s business model. Origins such as Vietnam, China, India, Malaysia, Sri Lanka, Indonesia, and Thailand continued to demonstrate exceptional performance during the quarter, indicative of the investments made in these markets over several years and endorsing EFL’s regional expansion strategy.


Whilst the North American trade businesses remained the key driver of business, the European and Intra-Asia businesses remained resilient with stable growth during the quarter.

Expolanka’s leisure sector displayed resilience, reflecting a significant recovery in performance, generating a revenue of Rs. 280 million (YoY +133%) and a PAT of Rs. 37 million (YoY +124%) for the quarter. The decisions made to focus on the long term, streamline the business, expand service capabilities, and build a lean and efficient operation, have contributed to this performance.

Investment Sector

The Investment Sector recorded a revenue of Rs. 817 million (YoY +100%), with the main contribution from the export operations. The portfolio strategy of moving into high-margin products with less volatility is driving the growth of the sector. The IT business, too, is gaining ground with improved contributions to the overall performance of the group.

“Although pandemic impacts are gradually easing as the world adopts the new normal, markets are expected to remain disrupted during the near term. The outlook for the company’s key consumer market, North America, remains steady, whilst the European and Asian markets are expected to see a gradual recovery. The pandemic has resulted in long-term changes to consumer behaviour, evolving market conditions, and nimble supply chains. As a company, Expo will remain committed to meeting these challenges whilst moving forward to take advantage of opportunities with the single focus of creating value for all our stakeholders,” Yusoof said.