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Monday September 20th, 2021

Sri Lanka John Keells Holdings back in profits in June 2021 quarter

ECONOMYNEXT – Sri Lanka’s John Keells Holdings which has operations in container terminals, leisure, retail and financial services reported earnings of 1.53 billion rupees for the June 2021 quarter, recovering from a loss of 1.6 billion a year ago during a Coronavirus lockdown.

JKH reported earnings of 1.16 rupees for the quarter.

John Keells Holdings revenues including interest and insurance premium grew 80 percent to 38 billion rupees in the June quarter while cost of sales grew 72 percent to 33.7 billion rupees leaving it with gross profits of 5.0 billion rupees, up from 1.6 billion last year.

Finance income was 3.2 billion rupees and expenses 1.5 billion rupees.

“..[T]he Group, excluding the Leisure businesses, witnessed a faster than anticipated recovery momentum with the performance of most businesses reaching pre COVID-19 levels where business activity and consumer trends were ‘near normal’ by the end of the previous quarter,” Chairman Krishan Balendra told shareholders.

“Whilst the COVID-19 pandemic was relatively contained in Sri Lanka resulting in a strong resumption of business activity by the end of the previous quarter, the rapid outbreak of a third wave of COVID-19 cases within the country from late April 2021 onwards resulted in disruptions to many businesses as consumer activity was severely restricted.”

Transportation, which includes South Asia Gateway Terminals, a container terminal reported profits of 933 million rupees up from 293 million rupees and financial services reported profits of 673 million rupees up from 399 million rupees.

Consumer foods reported profits of 48 million rupees, down from 140 million, retail was 296 million rupees from a loss of 273 million last year.

The loss in leisure was 1.7 billion rupees, down from 2.4 billion rupees. The firm has operations in both Sri Lanka and the Maldives.

“The Maldivian Resorts segment continued its encouraging recovery momentum seen in the previous quarter, where the occupancies at our hotels were higher than anticipated during this quarter on the back of recoveries in arrivals,” Balendra said.

“It is encouraging to witness the continuous momentum of forward bookings in the Maldives, demonstrating a significant ‘pent up’ demand for leisure travel.:

Property earned 271 million from a loss of 66 million last year.

“The quarter under review marks the commencement of the handover process of the residential apartment units at ‘Cinnamon Life’, a significant milestone considering the long gestation period of the project,” Balendra said.

“Accordingly, the quarter includes the first revenue and profit recognition tranche from sales.

“Revenue and profit recognition in Cinnamon Life will continue throughout the financial year as the handover of the residential apartments and commercial office spaces already sold will be completed, in addition to new sales recorded. “(Colombo/July28/2021)

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