JKH Group posts Rs 3.58 bn profit in first quarter

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Friday, July 29, 2016 - 01:00

The JKH Group has posted a Group profit before tax (PBT) of Rs.3.58 billion in the first quarter of the financial year 2016/17.

Chairman Susantha Ratnayake

This is an increase of 17 per cent over the Rs.3.05 billion recorded in the previous financial year.

JKH Chairman Susantha Ratnayake said the profit attributable to equity holders at Rs.2.37 billion is an increase of 9 per cent over the Rs.2.18 billion in the corresponding period of the previous financial year.

The revenue at Rs.22.73 billion for the period under review is an increase of 8 per cent over the Rs.21.10 billion recorded in the previous financial year. The Company PBT for the first quarter of 2016/17 at Rs.2.85 billion is a decrease of 12 per cent over the Rs.3.25 billion recorded in the orresponding period of 2015/16, largely due to a timing difference in receiving dividends. The Transportation industry group PBT of Rs.711 million in the first quarter of 2016/17 is an increase of 27 per cent over the first quarter of the previous financial year [2015/16 Q1: Rs.561 million]. Theincrease in profitability is mainly attributable to the performance of the Group’s Ports and Shipping business, where South Asia Gateway Terminals (SAGT) recorded double digit growth in throughput.

Whilst the Group’s Bunkering business recorded an improvement in margins, profitability was impacted due to a decline in volumes resulting from adverse monsoonal conditions which prevailed during the quarter. The Logistics business recorded a strong performance as a result of an increase in throughput in their warehouse facilities.

The Leisure industry group PBT of Rs.558 million in the first quarter of 2016/17 is an increase of 1 per cent over the first quarter of the previous financial year [2015/16 Q1: Rs.553 million]. The City Hotel sector recorded an overall increase in occupancies and profitability. The Sri Lanka Resorts segment achieved higher average room rates due to successful yield management.

Whilst overall arrivals to Sri Lanka demonstrated strong growth in the first quarter of the financial year, the negative publicity and travel warnings following the flooding and landslides in May impacted arrivals in the month of June.

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

The Property industry group PBT of Rs.57 million in the first quarter of 2016/17 is a decrease of 72 per cent over the first quarter of the previous financial year [2015/16 Q1: Rs.203 million].

The Consumer Foods and Retail industry group PBT of Rs.1.30 billion in the first quarter of 2016/17 is an increase of 48 per cent over the first quarter of the previous financial year with both sectors contributing to the improved performance.