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POSTED AT 09:45 AM 08-11-2018

JKH records Rs. 32.57 bn Revenue for first 6M

Susantha Ratnayake

John Keells Holdings PLC Group revenue of six months ended 30 September 2018 was Rs.32.57 billion for the period under review. This is an increase of 10% over the Rs.29.62 billion recorded in the previous financial year.

The cumulative revenue for the first half of the financial year 2018/19 at Rs.62.74 billion is an increase of 11% over the revenue of Rs.56.45 billion recorded in the corresponding period of the previous financial year said Chairman, Susantha Ratnayake.

The profit attributable to equity holders in the second half at Rs.5.10 billion is an increase of 37% over the corresponding period of the previous financial year, whilst the first six months performance at Rs.7.28 billion is an increase of 11% over the previous year. The profit attributable to equity holders includes recognition of a deferred tax asset at Union Assurance PLC.

The Group profit before tax (PBT) at Rs.4.69 billion in the second quarter of the financial year 2018/19 is a decrease of 5% over the Rs.4.95 billion recorded in the previous financial year. The cumulative PBT for the first half of the financial year 2018/19 at Rs.7.60 billion is a decrease of 16% over the PBT of Rs.9.04 billion recorded in the same period of the previous financial year.

The Company PBT for the second quarter of 2018/19 at Rs.2.61 billion is an increase of 20% over the Rs.2.18 billion recorded in the corresponding period of 2017/18. The Company PBT for the first six months of the financial year 2018/19 at Rs. 5.05 billion is a decrease of 9% over the previous financial year.

The Transportation industry group PBT was Rs.1.06 billion in the second quarter of 2018/19 [2017/18 Q2: Rs.1.07 billion]. The market share and profits of the Group’s Bunkering business, Lanka Marine Services increased as a result of a growth in volumes and improved margins. Whilst South Asia Gateway Terminals (SAGT) recorded a 12% growth in throughput over the corresponding period of the previous financial year, a decline in the volume of domestic TEUs impacted profitability.

The Leisure industry group PBT of Rs.453 million in the second quarter of 2018/19 is a decrease of 46 per cent over the second quarter of the previous financial year [2017/18 Q2: Rs.838 million].

Whilst the City Hotels sector maintained average room rates, profitability was impacted by a decline in occupancies, due to the increased supply of room inventory within Colombo and the lower volumes generated through the corporate segment.

The Maldivian Resorts segment recorded an improvement in occupancies, although profitability was impacted by lower average room rates.

The Property industry group PBT of negative Rs.14 million in the second quarter of 2018/19 is a decrease over the second quarter of the previous financial year [2017/18 Q2: Rs.57 million].

The Consumer Foods industry group PBT of Rs.443 million in the second quarter of 2018/19 is a decrease of 40 per cent against the second quarter of the previous financial year [2017/18 Q2: Rs.738 million]. Th

The decline in beverage volumes is due to the implementation of a sugar tax on CSD from November 2017, which resulted in substantial price increases across the industry.

The Frozen Confectionery business recorded a volume growth of 8 per cent during the quarter under review, driven by growth in the impulse segment.

Keells Food Products PLC recorded an increase in profitability on account of a 12 per cent growth in volumes and a better sales mix.

The Retail industry group PBT of negative Rs.75 million in the second quarter of 2018/19 is a decrease against the second quarter of the previous financial year [2017/18 Q2: Rs.506 million].

Source