John Keells profit after tax jumps 39 percent to 5.82 billion rupees in September quarter

John Keells Holdings (JKH) reported a 39 percent rise in profit after tax to 5.82 billion rupees for the quarter ended September 2026. Gains in shipping services, property and financial services offset a sharp fall in vehicle-related earnings.

Pre-tax profit edged up 2 percent to 7.95 billion rupees from 7.80 billion a year earlier. Profit attributable to shareholders of the parent rose 213 percent to 5.17 billion rupees from 1.65 billion. The company said the increase mainly reflects the lower effective contribution from John Keells CG Auto (JKCG), in which the group holds 50 percent.

Earnings before interest, tax, depreciation and amortisation (EBITDA) were flat at 18.30 billion rupees, against 18.36 billion a year earlier. Most industry groups grew, but JKCG’s earnings fell against an exceptionally strong comparison. The previous year’s quarter had benefited from pent-up demand after vehicle imports resumed. For the first half, group EBITDA rose 11 percent to 34.65 billion rupees.

The rupee’s appreciation during the quarter had a net impact of 340 million rupees on pre-tax profit. Excluding exchange movements, pre-tax profit was 7.61 billion rupees, compared with 8.04 billion a year earlier.

Transportation and consumer foods lead

Transportation was the strongest performer. EBITDA more than doubled to 4.89 billion rupees from 1.93 billion, driven by the bunkering business, Lanka Marine Services, where volumes rose 31 percent alongside higher margins. A larger contribution from Colombo West International Terminal (CWIT) also helped.

CWIT handled 502,351 twenty-foot equivalent units (TEUs) in the quarter, operating beyond the full utilisation of its phase 1 capacity. It became the fastest terminal in the Port of Colombo to reach two million TEUs, doing so within 18 months of starting operations. Phase 2 has begun, with equipment being commissioned progressively, and the terminal is on track for full operations in December 2026.

Consumer foods EBITDA rose 17 percent to 2.00 billion rupees. Carbonated soft drink volumes grew 10 percent and confectionery volumes 7 percent, while convenience foods also improved.

Retail eases on vehicle comparison

Retail EBITDA fell 53 percent to 4.75 billion rupees, entirely because of the vehicle business. JKCG and John Keells Office Automation reported EBITDA of 2.34 billion rupees, down 70 percent from 7.72 billion. JKCG handed over more than 2,400 vehicles in the quarter.

Supermarkets were steadier. Same-store sales grew 13 percent, supported by larger baskets and higher footfall. EBITDA rose 1 percent to 2.40 billion rupees despite higher electricity and distribution costs.

Leisure mixed, property and finance higher

Leisure EBITDA fell 10 percent to 1.28 billion rupees. Colombo hotels and the Maldivian resorts contributed less, partly because of travel disruption from the conflict in the Middle East. Sri Lankan resorts improved. City of Dreams Sri Lanka reported EBITDA of 340 million rupees, against a loss of 64 million a year earlier. Hotel occupancy and room rates rose, and the casino improved as operations scaled up.

Property EBITDA rose to 1.11 billion rupees from 196 million, helped by profit recognition from residential and commercial unit sales at Cinnamon Life and residential sales at TRI-ZEN.

Financial services EBITDA rose 44 percent to 3.62 billion rupees. The group’s share of profit from Nations Trust Bank grew, helped by a one-off tax credit from the acquisition of HSBC Sri Lanka’s retail banking business. That gain was partly offset by costs of integrating the acquired operations. Union Assurance reported growth in gross written premiums, driven by renewals.

The other segment, which includes IT and plantations, recorded EBITDA of 647 million rupees, up 38 percent.

Sovereign upgrade and dividend

JKH noted that Fitch Ratings upgraded Sri Lanka’s sovereign credit rating to ‘B-’ from ‘CCC+’, which it described as a milestone reflecting progress in restoring macroeconomic stability.

On sustainability, the group said its carbon footprint and water withdrawal increased in absolute terms. However, intensity measures improved in consumer foods, leisure and transportation, which account for most of both.

The board declared a first interim dividend of 10 cents per share, payable on or before 2 December 2026.