Aitken Spence achieves 33% growth in 2Q PBT from non-tourism sectors | Daily News

Aitken Spence achieves 33% growth in 2Q PBT from non-tourism sectors

Aitken Spence PLC non-tourism sectors reported a Profit-Before-Tax (PBT) of Rs 1.13 billion in 2Q, a growth of 33% compared to the previous year in the midst of challenging economic conditions. These sectors also reported an EBITDA (Earnings Before Interest Expense, Tax, Depreciation and Amortisation) of Rs 1.59 billion prior to the impact of forex compared to 2Q of previous year.

The Group’s non-tourism sectors continued their positive performance since commencement of full operations after the lockdown in May 2020. The non-tourism sectors include companies in the plantations, renewable energy, maritime and freight logistics, apparel, insurance, elevator agency, printing and packaging, money transfer and maritime education & management segments.

The Group’s new iconic venture, Sri Lanka’s first waste-to-energy project with an investment of Rs. 13 billion will commence operations by the end of the year providing a sustainable solution to the Colombo city’s waste management problem whilst adding renewable energy. The Group’s plantation segment recorded an excellent performance during the quarter with a profit growth of over 140%. The maritime & freight logistics sector also performed remarkably to record a 17% increase in profits for the period. The apparel manufacturing segment delivered a six-fold growth in profits whilst the printing & packaging segment recorded a turnaround during the quarter. The Group’s tourism sector EBITDA for 2Q was a loss of Rs. 940 million since it was largely affected by curtailments in international travel that impacted the Group’s destination management, hotels and airline GSA. By offering customised excursions with unique experiences to the local market, the destination management segment of the Group handled nearly 9,000 local clients during the quarter. With the easing of the lock down restrictions, Aitken Spence Hotels in Sri Lanka commenced operations in the second quarter catering to the local clientele. Most of the hotels and resorts representing the Heritance and Adaaran brands in the Maldives commenced operations and are seeing an upward trend in the bookings. Turyaa Chennai and Al Falaj Oman, remain operational throughout the period. Aitken Spence Group recorded an EBITDA of nearly Rs. 600 million for both tourism and non-tourism sectors for the Quarter.

“We remain hopeful for a faster recovery in the Group than achieved during the second quarter. The wider Group of companies in the plantations, renewable energy, maritime & freight logistics, apparel, insurance, elevator agency, printing & packaging, money transfer and maritime education & management performed exceptionally well which was beyond our expectations. This is reassuring as it shows strong resilience despite the setback in the tourism industry,” said Dr. Parakrama Dissanayake, Deputy Chairman and Managing Director of Aitken Spence PLC.