JKH PBT down 5-pct in 2Q: Revenue Rs.32.57Bn

Nov 08, 2018 (LBO) – Sri Lanka’s John Keells Holdings (JKH) said the Group recorded a profit before tax (PBT) at 4.69 billion rupees in the second quarter of the financial year 2018/19 with a decrease of 5 percent over the.4.95 billion rupees recorded in the previous financial year.

The cumulative PBT for the first half of the financial year 2018/19 at 7.60 billion rupees is a decrease of 16 percent over the PBT of 9.04 billion rupees recorded in the same period of the previous financial year, the company said issuing a statement.

The Group revenue at 32.57 billion rupees for the period under review is an increase of 10 percent over the 29.62 billion rupees recorded in the previous financial year.

The cumulative revenue for the first half of the financial year 2018/19 at 62.74 billion rupees is an increase of 11 percent over the revenue of 56.45 billion rupees recorded in the corresponding period of the previous financial year.

The profit attributable to equity holders in the second half at 5.10 billion rupees is an increase of 37 percent over the corresponding period of the previous financial year, whilst the first six months performance at 7.28 billion rupees is an increase of 11 percent over the previous year.

The profit attributable to equity holders includes a recognition of a deferred tax asset at Union Assurance PLC.

The Company PBT for the second quarter of 2018/19 at 2.61 billion rupees is an increase of 20 percent over the 2.18 billion rupees recorded in the corresponding period of 2017/18.

The Company PBT for the first six months of the financial year 2018/19 at Rs. 5.05 billion is a decrease of 9% over the previous financial year.

The Transportation industry group PBT was Rs.1.06 billion in the second quarter of 2018/19 [2017/18 Q2: Rs.1.07 billion]. The market share and profits of the Group’s Bunkering business, Lanka Marine Services increased as a result of a growth in volumes and improved margins. Whilst South Asia Gateway Terminals (SAGT) recorded a 12% growth in throughput over the corresponding period of the previous financial year, a decline in the volume of domestic TEUs impacted profitability.

The Leisure industry group PBT of Rs.453 million in the second quarter of 2018/19 is a decrease of 46 per cent over the second quarter of the previous financial year [2017/18 Q2: Rs.838 million].

Whilst the City Hotels sector maintained average room rates, profitability was impacted by a decline in occupancies, due to the increased supply of room inventory within Colombo and the lower volumes generated through the corporate segment.

The Maldivian Resorts segment recorded an improvement in occupancies, although profitability was impacted by lower average room rates.

The Property industry group PBT of negative Rs.14 million in the second quarter of 2018/19 is a decrease over the second quarter of the previous financial year [2017/18 Q2: Rs.57 million].

The Consumer Foods industry group PBT of Rs.443 million in the second quarter of 2018/19 is a decrease of 40 per cent against the second quarter of the previous financial year [2017/18 Q2: Rs.738 million]. Th

The decline in beverage volumes is due to the implementation of a sugar tax on CSD from November 2017, which resulted in substantial price increases across the industry.

The Frozen Confectionery business recorded a volume growth of 8 per cent during the quarter under review, driven by growth in the impulse segment.

Keells Food Products PLC recorded an increase in profitability on account of a 12 per cent growth in volumes and a better sales mix.

The Retail industry group PBT of negative Rs.75 million in the second quarter of 2018/19 is a decrease against the second quarter of the previous financial year [2017/18 Q2: Rs.506 million].