Sri Lankan conglomerate Aitken Spence PLC announced a stellar fourth quarter, significantly boosting their overall financial performance for the 2023/2024 financial year.
Key Highlights:
- Profit Surge: Aitken Spence reported a robust Profit Before Tax (PBT) of Rs. 4.8 billion in Q4, reflecting a remarkable 412% growth.
- EBITDA Uptick: The Group’s Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) also saw a positive rise of 44%, reaching Rs. 8.8 billion in Q4.
- Tourism Boom: The strong Q4 profits were attributed to the exceptional performance of Aitken Spence’s local hotels, fueled by a significant increase in tourist arrivals to Sri Lanka. The company’s destination management segments also played a crucial role in attracting new visitors.
- Improved Logistics: The maritime and freight logistics sector displayed an improved quarterly performance compared to the previous year, particularly when contrasted with the first three quarters.
Full Year Performance:
For the entire financial year ending March 31, 2024, the Group reported a PBT of Rs. 6.7 billion. The key contributors were:
- Tourism: The tourism sector emerged as the major driver, with local hotels experiencing a notable recovery in occupancy rates. Overseas hotels, particularly those in the Maldives, witnessed significant improvements in cash flow. Strategic partnerships forged by the destination management segment facilitated increased tourist arrivals.
- Challenges and Growth in Logistics: The maritime and freight logistics sector maintained consistent performance. However, overall earnings were hampered by a weaker exchange rate impacting foreign currency-linked revenues and a decline in freight rates. Despite these challenges, strategic partnerships were established to expand the company’s presence in the UAE and new joint ventures were formed in international freight forwarding, port operations management, BPO services, and food technology R&D.
Beyond Financials:
Aitken Spence achieved several significant milestones beyond financial success:
- Sustainability Recognition: The company secured the Best Corporate Citizen Sustainability Awards for Diversified and Best Presentation, reaffirming their commitment to responsible practices.
- Top Company Recognition: Aitken Spence was recognized among the Top 10 Most Awarded companies in the diversified category, a Top 10 Most Respected Entity, and a Top 10 Most Admired Company of Sri Lanka.
- Award-Winning Annual Report: The company’s annual report received recognition at the ACCA Sustainability Reporting and TAGS Annual Report awards.
A Global Presence:
Listed on the Colombo Stock Exchange since 1983, Aitken Spence boasts a rich heritage spanning over 150 years. With a team exceeding 13,000 employees, they operate across 16 industries in 11 countries: Sri Lanka, Maldives, Fiji, India, Oman, Myanmar, Mozambique, Bangladesh, Cambodia, Singapore, and UAE.