JKH posts negative Rs.2.43bn as Group PBT in June quarter, recovery faster than anticipated

Jul 29, 2020 (LBO) – Sri Lanka’s diversified John Keells Holdings says that the business recovery is reverting to almost pre-COVID-19 levels, faster than anticipated, and the momentum is expected to continue if the pandemic remains contained.

Releasing the interim financial statements for June quarter, Chairman Krishan Balendra, however, says that the leisure business continues to be significantly impacted given the closure of the airport in Sri Lanka and the high dependency on the recovery of key source markets in particular.

Given the faster than anticipated recovery momentum in business activity and the generation of cash profits by the Group, a first interim dividend of Rs.0.50 per share, amounting to a payout of about Rs.659 million, has been declared to be paid on or before 28 August 2020.

The Group profit before tax (PBT) of JKH is a negative Rs.2.43 billion in the first quarter of the financial year 2020/21 compared to the Rs.1.36 billion recorded in the previous financial year.

The profit attributable to equity holders is also a negative Rs.1.66 billion compared to the Rs.994 million in the corresponding period of the previous financial year.

The Group revenue at Rs.21.60 billion for the period under review is a decrease of 32 percent over the Rs.31.74 billion recorded in the previous financial year.

The profitability of Nations Trust Bank recorded an increase despite pressure on margins, due to the positive impact on account of the removal of the Debt Repayment Levy from January 2020 onwards.