Leading regional conglomerate Aitken Spence PLC announced an EBITDA of Rs. 8.9 billion for the six months ending September 30, 2024, which represents a growth of 10.4% (excluding effects from foreign exchange gains and losses). Earnings from equity-accounted investors are included in EBITDA, but interest costs, taxes, depreciation, and amortization are not. For the six months ending September 30th, the Group’s operating profit (excluding forex) increased by 38.7%, from Rs. 2.5 billion to Rs. 3.5 billion.
For the six months ending September 30, 2024, the Group’s Maritime & Freight Logistics division reported a PBT of Rs. 2.3 billion. Exchange rate fluctuations and a drop in company volumes had an impact on this performance.
With a PBT of Rs. 728 million, the Group’s Strategic Investment division demonstrated growth of more than 100%. The better performance of hydro power firms and the settlement of previously delayed interest earned by the other companies within the Group’s renewable energy segment were major contributors to this remarkable performance for the first half of the year.
With a 36.9% drop in losses for the six months ending September 30, 2024, the Group’s tourism industry showed a noticeable improvement. Higher average room prices and higher occupancy rates helped the hospitality sector, which improved outcomes for nearby hotels over the previous year.
However, during this time, the destination management segment encountered a number of difficulties. Results were greatly impacted by macroeconomic variables, such as the reintroduction of an 18% VAT on the industry, which was not allowed to be applied to rates previously agreed upon with tour operators. The performance of the segment was further impacted by the ongoing wars in the Red Sea, which had a negative impact on charter flights and cruise tourism from Eastern Europe.
The Group’s Services division lost Rs. 52.1 million, mostly as a result of higher elevator-related expenses brought on by the expedited completion of many high-rise structures in Colombo. A lower exchange rate on remittances in the money transfer industry also had an impact on the sector.
The Group’s profit before taxes (PBT) of Rs. 1.5 billion (excluding foreign exchange) showed a notable improvement during this time, marking a total recovery from the Rs. 1.2 billion loss that was recorded the year before.
Sustainability
The Group remains committed to environmental, social, and economic sustainability. Led by Executive Director Dr. Rohan Fernando and reporting to both the Group Supervisory Board and the Main Board, the Group formed a Sustainability Council, comprising of Sectoral Managing Directors and C-Suite officials, to oversee sustainability-related targets, KPIs, and decisions. During the quarter, the Council was sensitised on the IFRS S1 and S2 standards with external topic experts. Within the Group’s Disaster Risk Reduction strategy, the Group conducted its first earthquake drill and night-time fire drill at Aitken Spence Towers. The Group also updated dashboards on its data management platform to monitor non-financial performance indicators. The Group’s total energy consumption within the organisation for 2Q at 376,507 GJ saw a 16% increase from 2Q, 2023-2024 due to increase in operations within the Tourism and Strategic Investments Sectors. Comparatively, the water consumption within the Group in 2Q at 854,243m3 was 34% less than 2Q, 2023-2024. More stringent actions are planned to align with the Group’s pathways for net zero and net positive impact goals. Further, supporting collaborative efforts of the country, Aitken Spence continued to host the Climate Emergency Task Force meetings of the UN Global Compact at Aitken Spence Towers to encourage fostering the discourse on climate action among businesses.
Spence Luminary
In order to create a culture of mentoring, Group HR established a pool of mentors under the ‘Spence Luminary’ banner to guide fellow Spensonians in navigating their careers and realising their full potential. This initiative commenced with a programme tailor-made to equip 50 senior leaders with mentoring/coaching skills. Subsequently, an online platform was launched to connect Spensonian across Aitken Spence with potential mentors/coaches.
Spence Ascend
As part of Aitken Spence DE&I agenda and ongoing theme #SpenceWomenatWork, 40 female Spensonians in the managerial category were provided the opportunity to follow a leadership development programme akin to a mini-MBA curated by Group HR in collaboration with the Postgraduate Institute of Management (PIM). This focused talent intervention is aimed at upskilling high potential female employees to take up leadership roles in the future, aligned with the Group’s aim to increase the percentage of women in leadership positions to 30% by 2030.
Listed in the Colombo Stock Exchange since 1983, Aitken Spence is anchored to a heritage of excellence spanning over 150 years and driven by a team of more than 13,000 across 16 industries in 11 countries: Sri Lanka, Maldives, Fiji, India, Oman, Myanmar, Mozambique, Bangladesh and Cambodia, Singapore, and UAE.
Image Caption
1-D.H.S. Jayawardena- Chairman
2-Stasshani Jayawardena – Jt. Deputy Chairperson
3-Parakrama Dissanayake- Deputy Chairman
