John Keells Group profit before tax (PBT) increased by 21% to Rs.27.63 billion for the financial year ended 31 March 2018. The profit attributable to equity holders of the parent was Rs.21.02 billion, representing an increase of 29% over the Rs.16.28 billion recorded in the previous year
“During the year under review, the key businesses of the Group underwent a comprehensive five-year strategy formulation and planning exercise,” said its Chairman, Susantha Ratnayake.
“ Consequent to this exercise, key investments were identified and earmarked for implementation over the next few years across key growth businesses, particularly in the Leisure, Consumer Foods and Retail, Financial Services and Property industry groups.’’
“As part of our growth strategy, the Group strengthened its land bank through the acquisition of a few strategic land assets”.
The Leisure industry group reported revenues, including share of revenues from equity accounted investees, of Rs.25.30 billion and a PAT of Rs.3.34 billion, contributing 18% and 14% to Group revenue and PAT respectively.
The 2017/18 PAT decreased by 33% over the previous year. “Bentota Beach by Cinnamon” was closed for the reconstruction of a new hotel whilst “Ellaidhoo Maldives by Cinnamon” and “Cinnamon Dhonveli Maldives” were partially closed for refurbishment during the first half of 2017/18.”
The Property industry group reported revenues of Rs.1.23 billion and a PAT of Rs.1.05 billion, on attributing 1% and 5% to Group revenue and PAT respectively. The 2017/18 PAT increased by 69% over the previous year.
The Consumer Foods and Retail industry group recorded revenues of Rs.53.21 billion and a PAT of Rs.2.89 billion, contributing 39% and 13% to Group revenue and PAT respectively.
The 2017/18 PAT decreased by 26% over the previous year. The decline in profits is on account of the Consumer Foods sector and to a lesser extent the Retail sector.
The Financial Services industry group recorded revenues, including the share of revenues from associate companies, of Rs.17.22 billion and a PAT of Rs.8.58 billion, contributing 13% and 37% to Group revenue and PAT. The 2017/18 PAT increased significantly over the previous year, mainly on account of the Life Insurance business, Union Assurance PLC (UA).
The Information Technology industry group recorded revenues of Rs.11.07 billion and a PAT of Rs.360 million, contributing 8% and 2% to Group revenue and PAT respectively. The 2017/18 PAT decreased by 23% over the previous year.