Aitken Spence PLC, a leading diversified conglomerate, announced a strong financial performance for the first half of the fiscal year 2025. The company recorded an impressive 10.4% growth in EBITDA, reaching Rs. 8.9 billion for the six months ending 30th September 2024. This growth excludes the impacts of foreign currency exchange gains and losses, reflecting the Group’s solid operational performance.
The Group’s profit from operations (excluding forex) saw a remarkable 38.7% increase, rising from Rs. 2.5 billion to Rs. 3.5 billion during the same period.
In terms of sector performance, Aitken Spence’s Maritime & Freight Logistics sector reported a profit before tax (PBT) of Rs. 2.3 billion, despite challenges such as a decline in business volumes and fluctuations in exchange rates. Meanwhile, the Strategic Investment sector showed exceptional results with a PBT of Rs. 728 million, marking over 100% growth. This performance was largely attributed to improved results from hydro power companies and the resolution of delayed interest settlements in the Group’s renewable energy segment.
The Group’s tourism sector demonstrated a significant recovery, with a 36.9% reduction in losses compared to the previous year. Local hotels benefitted from increased occupancy rates and higher average room rates, contributing to the overall improvement. However, the destination management segment faced headwinds due to macroeconomic challenges, including the re-introduction of an 18% VAT on the sector, which could not be added to previously contracted rates with tour operators. Additionally, ongoing geopolitical tensions in the Red Sea impacted cruise tourism and charter flights from Eastern Europe.
The Services sector reported a loss of Rs. 52.1 million, mainly driven by increased costs in the elevator segment, particularly from accelerated projects in Colombo. The money transfer business also suffered due to unfavorable exchange rates on remittances.
The Group’s overall Profit Before Tax (PBT), excluding forex, saw a significant turnaround, improving from a loss of Rs. 1.2 billion in the previous year to a profit of Rs. 1.5 billion for the six months ending 30th September 2024.