ECONOMYNEXT – Profits at Sri Lanka’s John Keells Holdings, a diversified group, were flat at 2.1 billion rupees in the June 2015 quarter despite falling interest income amid a consumer spending boom in the economy and better margins at its bunkering and ports, interim accounts showed.
The group reported earnings of 1.91 rupees per share for the quarter.
JKH which has interests in ports, bunkering, consumer goods, financial services and property said revenues rose 01 percent to 21 billion rupees and expenses fell 1 percent to 15.2 billion rupees, allowing gross profits to rise 9 percent to 5.7 billion rupees.
Finance income fell 28 percent to 1.59 billion rupees as cash reserves were spent on a large property and hotel project in Colombo.
Ports and bunkering earned 544 million rupees in the June 2015 quarter up from 463 million rupees on better margins and increased shipping calls in Colombo, Chairman Susanthe Ratnayake told shareholders.
Profits from the leisure sector fell to 478 million from 582 million a year earlier amid lower occupancy in city 5-star properties but its new business hotel, Cinnamon Red, was doing well, the firm said.
Profits at consumer goods and retail soared to 627 million rupees up from 337 million amid a consumer boom fired by rising state as well as private credit.
Profits at financial services rose to 261 million rupees, up from 218 million rupees.
Information technology returned 57 million rupees, up from 5.7 million.