Tuesday 8 November 2016

Sri Lanka JKH September quarter net up 8-pct

ECONOMYNEXT – Sri Lanka’s John Keells Holdings conglomerate said September quarter group net profit rose 8% to Rs3.8 billion from a year ago, with sharp gains from its consumer foods, retail and leisure businesses while transportation earnings fell.

Group sales rose 13% to Rs25.76 billion for the quarter, according to interim results filed with the stock exchange.

JKH chairman Susantha Ratnayake said transportation industry group Profit Before Tax of Rs.668 million in the second quarter of 2016/17 is a decrease of 18 per cent over the second quarter of the previous financial year.

“The decline in profitability is mainly attributable to the lower contribution from the Group’s Bunkering business and to a lesser extent the Ports business.

“Whilst South Asia Gateway Terminals (SAGT) recorded a double digit growth in throughput over the corresponding period of the previous year, a decline in the volume of domestic TEUs impacted profitability.”

The Bunkering profitability was impacted due to supply disruptions caused by shipping delays but the Logistics business recorded a strong performance due to an increase in throughput in its warehouse facilities.

Ratnayake said the Leisure industry group PBT rose 54 percent toRs.1.36 billion in the second quarter of 2016/17.

The City Hotels sector and Sri Lanka Resorts segment witnessed an increase in occupancy and average room rates across all properties compared to the corresponding period of the previous financial year.

The performance of the Maldivian Resorts segment was impacted by the slower than expected recovery of the overall market from the effects of political events in late 2015, he said.

JKH’s Consumer Foods and Retail industry group PBT rose 55 percent to Rs.1.60 billion in the second quarter of 2016/17 with both sectors contributing to the improved performance.

“Profitability of the Frozen Confectionery and Beverage businesses were driven by double digit growth in volumes and improved margins,” Ratnayake said.

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