ECONOMYNEXT – Sri Lanka’s John Keells Holdings reported a loss of 658 million rupees for the September 2023 quarter, as the group converted its accounting of a property project to domestic currency taking a 2.14 billion forex loss.
“During the quarter under review, the Group’s businesses, except for Transportation and Property, recorded growth in profitability,” Chairman Krishan Balendra told shareholders in interim accoutns.
“The operating environment in the country continued its gradual normalisation supported by sustained improvement in the country’s key macro-economic indicators, with inflation and interest rates recording a steep decline and the Rupee remaining stable…”
“While disposable incomes are still negatively impacted by higher direct and indirect taxes, the improvement in macro-economic conditions should result in a gradual recovery in consumer confidence and spending as witnessed in the quarter under review.”
The Supermarket business recorded a strong performance in revenue during the quarter, with same store sales recording encouraging growth of 10 percent, driven by customer footfall growth of 11 percent.
Revenues fell 8 percent to 59.6 billion rupees, cost of sales fell 10 percent to 52 billion rupees and gross profits grew 8 percent to 11.5 billion rupees.
Finance costs went up 78 percent to 6.7 billion rupees amid the forex hit as accounting for the firm’s Cinnamon Life project which had a 225 million dollar loan was converted to rupees, with the assets now being accounted in domestic currency. (Colombo/Nov08/2023)