JKH records strong growth in 2021/22 year
View(s):John Keells Holdings (JKH) has seen a strong recovery momentum during the financial year ending March 31, 2022 with the recurring performance of most of its businesses reaching pre-COVID-19 levels.
Group revenue increased by 71 per cent to Rs.218.07 billion while recurring group EBITDA (earnings before interest, taxes, depreciation, and amortisation) increased by 152 per cent to Rs.39.26 billion, the company said in a statement.
The significant growth in profits was driven by the turnaround in the group’s leisure businesses, the revenue recognition at ‘Cinnamon Life’ and improved performance across all other business verticals.
The Leisure industry group, in particular, recorded a significant turnaround in performance with a recurring EBITDA of Rs.3.78 billion compared to the negative recurring EBITDA of Rs.3.59 billion in the corresponding year.
The Maldivian Resorts segment continued its strong recovery with the occupancy and average room rates at its hotels reaching pre-pandemic levels. With the relaxation of travel restrictions, the Colombo Hotels and Sri Lankan Resorts segments recorded a significant turnaround, reporting a positive EBITDA and PBT in the fourth quarter.
The group’s port business recorded an increase in profitability driven by volume growth and ancillary revenues whilst the Bunkering business recorded an increase in profitability driven by higher margins on account of the increase in global fuel prices and volumes, the statement added.
The Retail industry group recorded an encouraging performance with same store sales growth driving profitability in the Supermarket business, whilst the Office Automation business recorded a strong increase in mobile phone volumes, although PBT (profit before tax) was materially impacted on account of the sharp depreciation of the Rupee.
The Consumer Foods industry group continued its strong recovery momentum with all segments recording strong double-digit growth in volumes, with volumes reaching pre-pandemic levels.
The Insurance business recorded double-digit growth in gross written premiums driven by a strong growth in regular new business premiums while the Banking business recorded an increase in profitability aided by loan growth, focused recovery efforts and cost management initiatives.
In a separate statement, the company said that the country is facing its most significant and challenging crisis – economically, politically and socially.
As a corporate citizen and member of the business community, the John Keells Group has been gravely concerned with the dire economic circumstances facing the country, which require immediate remedial measures.
It urged the leadership of the country to take decisive action and be conscious of the possibility of continued social unrest if the calls for change and good governance by the people, which we are supportive of, are not facilitated in a manner that ensures a sustainable solution. “We urge all key parties to reach consensus, within the construct of the constitution of the country and due process being followed, in respecting the will of the people,” it said.
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