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JKH records Rs. 10.41 Bn EBITDA, growth of 9% in Q3

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Chairman JKH,  Krishan Balendra
Chairman JKH, Krishan Balendra

John Keells Group Earnings before interest, taxes, depreciation, and amortization (EBITDA) recorded an improvement to Rs. 10.41 billion during the quarter under review, which is an increase of 9% against the comparative period of last year [2021/22 Q3: Rs. 9.53 billion].

Excluding the impact of a one-off deferred tax charge at South Asia Gateway Terminals on account of the significant change in income tax rates, Group EBITDA increased by 17% to Rs.11.17 billion in the third quarter of the financial year 2022/23.

Apart from the Consumer Foods and Property industry groups, the Group’s businesses recorded growth in EBITDA compared to the third quarter of the previous year. The Transportation industry group recorded an increase in profitability due to its USD denominated revenue streams and resultant translation gains due to the depreciation of the Rupee as compared against the previous year.

The groundwork on the West Container Terminal (WCT-1) at the Port of Colombo is progressing well with the dredging works being rapidly completed. The contract for the quay wall construction, a significant component of the overall construction works, was awarded in October 2022.

The Leisure industry group recorded a strong performance driven by the Maldivian Resorts and Colombo Hotels segments. 

The Supermarket business recorded an EBITDA growth of 26% to Rs.1.99 billion due to an increase in same store sales driven by a combination of higher customer football and basket values due to high inflation.

The overall profitability in the retail industry group was impacted by a substantial decline in the EBITDA of the Office Automation business compared to the third quarter of the previous year. 

Profitability in the Consumer Foods businesses were impacted by volume declines reflective of dampened consumer sentiments, and lower margins, although margin pressure is expected to ease off from the fourth quarter of 2022/23 onwards.

The Property industry group recorded a decline in profitability as the third quarter of the previous year included revenue and profit recognition from the handover of the residential apartments and commercial office floors at ‘Cinnamon Life’. 

The recognition of revenue of all units sold at ‘Cinnamon Life’ up to March 31, 2022 was recorded across 2021/22. The Insurance business recorded a growth in the life insurance surplus and gross written premiums whilst Nations Trust Bank recorded an increase in net interest margins and a reduction in costs.

Wednesday, February 1, 2023 – 01:00

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