Wednesday 7 February 2018

Sri Lanka's Asian Hotels profits plunge 45-pct in peak season

ECONOMYNEXT - Profits at Sri Lanka's Asian Hotels and Properties, a unit of John Keells Holdings which runs Colombo's Cinnamon Grand and Cinnamon Lakeside, fell 45 percent from a year earlier to 306 million rupees in the peak December 2017 quarter with revenues also sliding.

The group reported earnings of 60 cents per share for the quarter. In the nine months to December Asian Hotels reported earnings of 2.25 rupees per share on total profits of 996 million rupees, which fell 31 percent.

Revenues fell 9 percent to 2.25 billion rupees in the quarter, cost of sales rose 1.1 percent to 1.03 billion rupees and gross profits contracted 16 percent to 1.22 billion rupees.

Distribution expenses grew 23 percent to 115.5 million rupees and administrative expenses edged up 1 percent to 532 million rupees.

At core company level, which does not include of Cinnamon Lakeside, revenues were down 12 percent to 1.39 billion rupees, and profits fell 42 percent to 294 million rupees.

The group also has some revenues from apartment rentals.

In the nine months to December property revenues were slightly up at 308 million rupees from 307 million and net profits rose to 198 million rupees from 182 million.

For the six months to September group revenues fell only 2 percent to 2.67 billion rupees compared to the 9 percent fall in the peak December season.

Hong Kong based Shangri-La opened in the winter tourist season and has been attracting some of the meeting and banquet business in Colombo, analysts say.

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