John Keells Holdings Dec quarter net profit down by 50-pct

Jan 29, 2020 (LBO) – Profit attributable to equity holders of Sri Lanka’s diversified John Keells Holdings in the third quarter at 2.40 billion rupees is a decrease of 50 percent over the previous year, interim accounts showed.

First nine months’ performance at 5.68 billion rupees is a decrease of 53 percent over the previous year.

The Group profit before tax (PBT) at 3.11 billion in the third quarter of the financial year is a decrease of 45 percent over the 5.63 billion recorded in the corresponding period of the previous financial year.

The Group PBT for the first nine months at 7.06 billion is a decrease of 47 percent over the PBT of 13.23 billion recorded in the same period of the previous financial year.

John Keells Holdings reported a 2 percent growth in group revenue during the third quarter of the year of 37.46 billion compared to the 36.55 billion recorded in the previous financial year.

Transportation, Consumer Foods, Retail and Financial Services industry groups recorded a growth in profits although overall Group performance was impacted by the Sri Lankan Leisure business and exchange losses at the Holding Company.

The Leisure industry group EBITDA of 656 million in the third quarter of
2019/20 is a decrease of 51 percent over the adjusted EBITDA for the third quarter of the previous financial year.

JKH said the decline in profitability is on account of the negative impacts to the Sri Lankan leisure business as a result of the Easter Sunday terror attacks in April 2019 and the partial closure of Cinnamon Dhonveli Maldives for refurbishment.

The Transportation industry group EBITDA of 1.29 billion in Q3 was an 8 percent increase over the adjusted EBITDA of 1.19 billion for the third quarter of 2018/19.

Exchange losses were recorded at the Holding Company on its foreign currency denominated cash holdings compared to the significant exchange gains recorded in the previous year and lower finance income as a result of the deployment of cash in new investments.

The Consumer Foods industry group EBITDA of 722 million for Q3 of FY2019/20 was a 21 percent increase over the adjusted EBITDA of 598 million for the third quarter of 2018/19.

The Retail industry group recorded robust revenue growth of 18 percent for the quarter which was driven by a strong performance in the supermarkets business.

The Financial Services industry group EBITDA of 1.16 billion for Q3 of FY2019/20 was an 11 percent increase over the adjusted EBITDA of 1.05 billion for the third quarter of 2018/19.

Other, Including Information Technology and Plantation Services sectors recorded an EBITDA of 151 million in the third quarter of 2019/20 over the adjusted EBITDA of 2.44 billion for the third quarter of 2018/19.

JKH declared a second interim dividend of 1.50 rupees per share, to be paid on 19 February 2020, which is an increase from the previous two dividend payments of 1.00 rupee each per share.