Sri Lanka’s JKH profits up 321-pct in Sept 2021, helped by property

ECONOMYNEXT – Sri Lanka’s John Keells Holdings has reported profits of 2.8 billion rupees for the September 2021 quarter, up 321 percent from a year earlier, amid apartment sales and a general recovery in business.

JKH reported earnings of 2.17 rupees per share for the quarter. In the six months to September JKH reported earnings of 3.33 rupees per share on total profits of 4.3 billion rupees, up from a loss of 977 million rupees.

Total revenues, including insurance grew to 53 percent t 49 billion rupees, cost of sales grew 57 percent to 42 billion rupees and gross profits grew 37 percent to 7.1 billion rupees, interim accounts showed.

JKH has interest in container ports, bunkering, retail, consumer goods manufacture, financial services and tourism in Sri Lanka and the Maldives.

“The Group’s businesses, except for Consumer Foods and the Supermarket business, recorded a strong growth in profitability compared to the second quarter of the previous year, despite the quarantine curfew which prevailed for a period of six weeks due to the third wave of COVID-19 cases which impacted business activity,” the firm told shareholders.

Earnings before interest tax, depreciation and amortization of the property segment recovered to 1.26 billion rupees against a negative 12 million giving a strong boost to the bottom line.

“The increase in profitability is attributable to the profit recognition of the residential apartment units at ‘Cinnamon Life’,” Chairman Krishan Balendra told shareholders.

“Revenue and profit recognition in ‘Cinnamon Life’ will continue throughout the financial year as the handover of the residential apartments and commercial office spaces already sold will be completed, in addition to new sales recorded.”

“The Group has commenced discussions with key tenants for the retail mall, with various alternatives being considered for the retail space to ensure unique attractions and offerings.”

Retail has reported EBITDA of 1.33 billion in the second quarter down 3 per cent over amid a lockdown.

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