Sri Lanka’s John Keells Holdings (JKH) said on Thursday that pre-tax profits for the six months to September 2009 fell by 38 % to Rs 1.86 billion compared to the same period in 2008, with the company saying the results was much better than expected.
Brokers said shareholders funds was helping the company to profitability. The figures show that the group earned Rs 1.51 billion in interest income (from shareholders funds) in the 6-month period against Rs 1.03 billion earned in the same 2008 period. However after deducting the component of interest expenses which was Rs 788 million vs Rs 799 million (2008 period), the net interest income earned was Rs 723 million (2009) vs Rs 231 million.
“Though our results were not as good as last year, they are well above what was expected at the beginning of the year, given the improved environment. We are confident that the full potential that this opportunity affords us will be realised in the near future,” said JKH Chairman Susantha Ratnayake in a statement to stakeholders.
Revenue for the same 2009 period fell marginally by 2 % to Rs. 21.30 billion but revenue for the last quarter (July-September) rose by 5 % to Rs 11.23 billion due to the improved situation (in the country).
Ratnayake said that given the exposure to key segments of the economy and JKH’s strong balance sheet, it was well positioned to benefit from the opportunities that the new environment presents (after the end of the conflict).
He said the group has already invested in increasing its presence in the North-East in the Consumer Foods and Retail Industry Group and the Financial Services Industry Group and will be upgrading the Club Oceanic Hotel in Trincomalee from December. |
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