JKH records EBITDA of Rs.14.28 Bn in Q3
John Keells Holdings Group EBITDA at Rs.14.28 billion in the third quarter of the financial year 2024/25 saw an increase of 4% against Group EBITDA of Rs.13.74 billion recorded in the corresponding period of the previous financial year.
Group EBITDA includes substantial costs pertaining to the pre-opening and operations of the ‘Cinnamon Life’ hotel. Group EBITDA for the quarter under review includes fair value gains on investment property while Group EBITDA in the third quarter of the previous year includes a deferred tax credit at South Asia Gateway Terminals (SAGT). Excluding these impacts, Group EBITDA for the third quarter of 2024/25 recorded an increase of 10% to Rs.14.89 billion [2023/24 Q3: Rs.13.58 billion].
The 687-key Cinnamon Life hotel, restaurants and banquet facilities commenced operations on 15 October 2024. Demand and bookings for the various event spaces at the property have exceeded expectations.
The integrated resort’s residential and office towers have witnessed a resurgence in interest in the recent months.
Fit-out work of the gaming space is progressing well and is expected to be operational along with the retail mall in the third quarter of CY2025.
The construction and installation work on the West Container Terminal at the Port of Colombo is progressing well with all civil works pertaining to the first phase of the project being completed. All operating equipment relating to the first phase has been received and is being commissioned.
The terminal will be completed by February 2025 and expected to receive its inaugural test vessel, thereafter, signaling the commencement of its first phase of operations.
The profitability of SAGT recorded an increase driven by a growth in volumes and an improvement in the mix. While Lanka Marine Services recorded a volume growth, profitability was impacted due to a contraction in margins on account of intensified local competition and the temporary oversupply of inventory and the appreciation of the Rupee.
The Beverages and Frozen Confectionery businesses recorded a strong growth in profitability driven by double-digit volume growth and a sustained improvement in margins.
The Supermarket business recorded a strong performance during the quarter, with same store sales recording a growth of 14%, resulting in growth in profitability and margins. The performance of the Leisure industry group was impacted by the pre-opening and operating costs pertaining to the ‘Cinnamon Life’ hotel, together with the decline in profitability mainly attributable to the Colombo Hotels and the Maldivian Resorts segments.
Union Assurance maintained a steady profitability, recording double digit growth in both first year premiums and renewal premiums.
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