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Expolanka credits stock performance to its restructuring strategy 

26 Aug 2021

  • CEO Yusoof says initial impetus was post-IPO portfolio restructuring
  • Expo shares record over 2,200% growth within a year
BY Cassendra Doole  The initial momentum that paved the way for Expolanka Holdings PLC to exceed the Rs. 100 mark from it’s trading price of Rs. 5 within a single year was the restructuring of their complete portfolio, enabling this as currently one of the largest listed companies in the Colombo Stock Exchange (CSE) to focus on a core business strategy, according to the company.  Expolanka Holdings Group CEO and shareholder Hanif Yusoof speaking to The Morning Business said the restructuring further enabled them to embark on an ambitious growth plan that allowed them to reap the fruits of their efforts today.  “The initial impetus for our performance was from the portfolio restructure that we did post our IPO in 2011, which enabled us to redirect resources and time to focus on our core business. This paved the way for us to bring in one of the largest FDIs into Sri Lanka, where Sagawa our parent company acquired 51% stake in 2014,” Yusoof said, adding “We subsequently embarked on an ambitious growth plan to expand our customer portfolio, increase our global footprint, develop our service capabilities, whilst enhancing our procurement capabilities & other related operational efficiencies resulting in the company being able to generate consistent and sustainable results. I believe that pursuing the above strategy, steadfastly supported by our team and nimble, agile approach has enabled us to achieve consistent and sustainable results.”  Expolanka Holdings PLC recorded a share price appreciation of 100 per cent during the last two weeks from Rs. 50 to Rs. 100, accounting for almost 50% of the turnover last Tuesday (24) by contributing 98 points to the All Share Price Index (ASPI). Its share price appreciated by 21% at Rs. 20.75, rising to Rs. 121.25 from Rs. 100.50.  Speaking of any future prospects in share prices, Yusoof said: “The market will assess us and our performance. We believe in creating value to our shareholders and will focus on developing and sustaining the fundamentals of the organisation, which has been our focus over the last several years.”  Furthermore, Yusoof added that the first step in any future plans for the company will be to consolidate the company’s performance by continuing on the momentum they are currently on. “Firstly, our focus will be on consolidating our performance, by continuing our strategic journey and developing on the factors that has brought us success. Growing our customer portfolio, enhancing our service capability, focusing on building capacity, improving our internal efficiencies, whilst expediting the delivery of our digital initiatives.”  Expolanka Holdings PLC has been able to achieve significant results from the first quarter (Q1) of the financial year 2020/2021. By the quarter that ended on 31 March 2020, the company reported a loss of Rs. 333 million. The following quarter ended on 30 June 2021, the company reached a Profit After Tax (PAT) of Rs. 1.75 billion. The quarter ended on 30 September earnt a PAT of Rs. 4.54 billion while Q4 ended with a PAT of Rs. 4.20 billion.  When it comes to its Initial Public Offering (IPO) only 172 million ordinary voting shares were issued at the IPO at a cost of Rs.14 each in spite of the expectation of the Expolanka of raising Rs. 2.4 billion in 2011. The shares of Expolanka Holdings were traded at a lower price than the one issued over a period of time and fell as low as Rs. 1.70 by May 2020. Expolanka Holdings is a globally diversified group company. It majorly covers a wide range of businesses such as logistics and leisure as well as investment. It is now considered the second largest company listed on the CSE. Listed companies 2Q2021 earnings rose by 117% to Rs. 75.6 billion as the corresponding quarter of the previous year was impacted by the first wave of COVID-19 and subsequent lockdowns.


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