Sri Lankaâ€™s Serendib Leisure Hotels December net down 12-pct
ECONOMYNEXT – Sri Lanka’s Serendib Leisure Hotels group said December 2016 quarter net profit fell 12 percent to Rs33 million from a year ago and that the last quarter would be highly competitive, with more room inventory and weaker currencies of key markets.
Sales of the firm, part of the Hemas group, fell 2 percent to Rs436 million, according to interim accounts filed with the stock exchange.
Earnings per share for the December quarter were 29 cents.
EPS for the nine months ending 31 December 2016 were 22 cents, down from 47 cents the year before when net profit had halved to Rs24 million, with sales up 3 percent to Rs1.2 billion.
“With an increased room inventory, particularly in the regions that we operate, we anticipate a highly competitive final quarter for the current financial year,” a statement said.
“Our revenue will be under further pressure with a weak outlook on the euro and the Sterling Pound, the currencies of our key markets. With a focused effort on sales and marketing, we expect to close the year with good results for the final quarter.”
The Serendib Leisure Hotels group comprises Serendib Hotels and its subsidiaries Dolphin Hotels, Hotel Sigiriya and Serendib Leisure Management Ltd.
The Serendib group had an overall occupancy of 73 percent for the nine month period, and a drop of 3 percent over last year, the statement said.
“The increase in overheads and reduction in exchange gains compared to last year resulted in a reduction in operating profit by 40 percent to Rs88 million,” it said. “Notably, the repayment of debt has reduced our finance costs by 46 percent to Rs11 million by the end of Q3.”
Serendib Leisure Hotels said that, with the partial closure of the Bandaranaike International Airport from 6th January to 6th April 2017 for repairs, a drop of 12-13 percent in flight capacity is anticipated.
“However, we do not expect occupancy levels at our hotels to be significantly affected,” it said.
The group under the Serendib Leisure umbrella currently manages AVANI Bentota Resort & Spa, AVANI Kalutara Resort, Club Hotel Dolphin and Hotel Sigiriya, with a consolidated inventory of 413 keys, a statement said.
Jada Resorts & Spa (Pvt) Ltd., the owning company of AVANI Kalutara is treated as an investment, and its operating results are not reflected in the results of Serendib Hotels.
(COLOMBO, Feb 13, 2017)