Retail, ports, bunkering boost Sri Lanka JKH Sept profit
ECONOMYNEXT – Sri Lanka’s John Keells Holdings said group net profit for the September 2015 quarter rose 31 percent to 3.5 billion rupees from a year ago driven mainly by its ports and bunkering, and consumer foods and retail businesses.
Group sales rose five percent to 22.7 billion rupees in the quarter, a stock exchange filing said.
Diluted earnings per share for the September quarter rose to 3.01 rupees from 2.30 rupees the year before.
EPS for the six months ending September 2015 rose to 4.90 rupees from 4.15 rupees the previous year with sales up three percent to 43.7 billion rupees.
JKH chairman Susantha Ratnayake said the transportation business pre-tax profit rose 53 percent to 844 million rupees in the second quarter of 2015/16 over the second quarter of the previous financial year.
“The improved performance is attributable to the group’s ports and bunkering businesses,” he told shareholders.
“The bunkering business witnessed an improvement in volumes on the back of an increased demand for supplies over Colombo and maintained its market leadership position,” he said.
“Enhanced operational efficiencies and reduced overheads, contributed positively towards the performance of South Asia Gateway Terminals (SAGT).”
Ratnayake said JKH’s consumer foods and retail industry group pre-tax profit more than doubled to 1.04 billion rupees in the September quarter of 2015/16 from a year ago.
“The performance of the industry group was buoyed by the sustained growth in consumer spending where volumes continued to demonstrate encouraging growth,” he said.
“Ceylon Cold Stores (CCS) recorded an improved performance on account of the Frozen Confectionary and Beverage businesses recording a notable growth in volumes and improved margins.
“Keells Food Products (KFP) continued to witness a growth in profitability aided by improved operational efficiencies and an encouraging growth in volumes,” Ratnayake said. (Colombo/Nov03/2015)