ExpolankaHoldingsPLCAR2021-22.pdf - Flipbook - Page 48
EXPOLANKA HOLDINGS PLC
INTEGRATED ANNUAL REPORT 2021/22
Revenue growth during the year was predominantly derived from the Logistics Sector, which contributed 99.2%
of the group Revenue. This was driven by significant growth in base business volumes across both Freight
and Ocean Freight Products. Air Freight remained the largest contributor of revenue, whereas the importance
and significance of the Ocean Business grew during the year. The industry experienced several supply chain
disruptions particularly during the first 3 quarters of the year, with freight rates peaking during quarter 3, whilst
market conditions continued to evolve. The North American trade lane was the key driver of growth with strong
contributions coming from all key origins in the Indian sub-continent market as well as the Southeast Asian and
the Far East Markets. The European Trade Lane too experienced visible growth during the year, whilst the Intra
Asia Trade Lane supported the Revenue growth achieved by the company. The group continued to expand its
customer portfolio which saw contributions from a range of customers across diverse industry verticals. Whilst
the Apparel vertical continued to remain the largest contributor to the business profile of the group, robust
progress was seen in other verticals such as Home Improvements, Electronics, Auto Spares, and other retail
verticals. The leisure sector, which was impacted by the Pandemic, experienced a recovery during the year,
reflecting the resilient nature of its business operations, whilst the Investment sector saw stable growth.
Over 95% of the Revenue of the group is derived from its international operations, reflecting the organization’s
global profile and international presence. The business benefited from a depreciation of the reporting currency
(LKR), which contributed to the growth in Revenue.
The Revenue generated by the business is from its continued business operations and is a result of the
consistent strategy followed and implemented by the organization.
The growth in Gross Profits was largely driven by the growth in revenue, however, the business was able to
adopt several smart and proactive procurement strategies to ensure that the organization was able to secure
capacity efficiently. This was an outcome of the business remaining agile and adopting to market conditions
such as executing several charter programs during the year. In a period when capacity was constrained and
pricing at a premium, the company was able to leverage its long-term carrier partnerships and expanded
relationships with existing and new carriers to successfully enhance its Capacity planning efficiencies.
Implementing a network-wide approach to the execution of its business, the organization was able to leverage
its strength in its origins in serving business efficiently augmenting the aggressive sales strategies implemented
by its commercial teams.