ECONOMYNEXT – Profits at Sri Lanka’s John Keells Holdings, which has interests in ports, financial services and hotels, fell 71 percent from a year ago to 1.9 billion rupees in the March 2025 quarter, with higher depreciation and interest charges on its Cinnamon Life project.
Earnings were 0.12 cents per share for quarter, interim accounts showed. In the year to March earnings were 32 cents per share, on total profits of 5.3 billion rupees, down 53 percent.
Total revenues, with 5.2 billion rupees in insurance income was 89.5 billion rupees, up 11 percent and cost of sales were up 9 percent to 69.3 billion rupees. Gross profits were up 19 percent to 20.1 billion rupees.
Finance costs were up 99 percent to 4.8 billion rupees and administration costs were up 48 percent to 8.5 billion rupees.
Profit before tax rose 71 percent to 10.85 billion rupees excluding the cost of the City of Dreams project. The depreciation charge was 1.14 billion rupees and interest 1.09 billion rupees.
“While the charges affect the profitability in the immediate term, the increase in revenue and profitability is expected to more than off-set this once the Cinnamon Life and the rest of the City of Dreams Sri Lanka operations ramp up over the next few quarters,” JKH told shareholders.
The first shipment of 500 BYD vehicles had arrived in the country in March and handover had started from April.
Transportation division seen a fall in profits with bunkering business coming down from last year highs with Red Sea uncertainty. Though margins widened volumes fell 17 percent.
South Asia Gateway terminal had seen higher volumes but rupee appreciation had kept profits flat.
Consumer foods industry had grown by double volume growth. Sales grew 15 percent in supermarkets by volume as prices fell amid the deflationary policy by the central bank.
Property segment profits were also up. (Colombo/May28/2025)