Earnings, revenue picks up at JKH in 1stQ 2021/22

Group revenue at the John Keells Group during the quarter ending 30^th June 2021 rose by 80 percent to Rs.38.80 billion against Rs.21.51 billion recorded in the previous financial year, the company said on Wednesday, releasing its quarterly statement.

Group revenue excluding the leisure industry group was Rs.36.87 billion during the quarter under review, which is a 73 percent increase against the same comparative period (Rs.21.35 billion).

According to company chairman Krishan Balendra, the quarter under review was deeply impacted due to the rapid outbreak of a third wave of COVID-19 cases in the country from late April 2021 onwards resulting in the imposition of island-wide travel restrictions from mid-May to mid-June 2021 and many other health and safety restrictions to stem the number of new cases.

“It should be noted that the comparative performance with the corresponding quarter in the previous year is somewhat distorted since there were varying impacts on account of the travel restrictions due to the third wave to our businesses in the current year although the country had an island-wide lockdown for a similar length of time. The impacts to our businesses from the recent imposition of travel restrictions were less pronounced compared to the previous year, given better insights on consumer behaviour and business momentum which aided the businesses to better navigate through this outbreak,” he said in the statement.

The group earnings before interest, tax, depreciation and amortisation (EBITDA) at Rs.4.76 billion in the first quarter of the financial year 2021/22 is an increase of 494 percent over the EBITDA of Rs.802 million recorded in the previous financial year. Group EBITDA excluding the leisure industry group stood at Rs.5.41 billion during the quarter under review, which is a 139 percent increase against the comparative period.

Group profit before tax (PBT) was Rs.1.31 billion in the first quarter of the financial year 2021/22 compared to a negative Rs.2.43 billion recorded in the previous financial year. Group PBT excluding the leisure industry group stood at Rs.3.25 billion during the quarter under review (Rs.351 million). The profit attributable to equity holders is Rs.1.53 billion compared to a negative Rs.1.66 billion in the corresponding period of the previous financial year, the statement said.

It said that the EBITDA of the group’s worst-hit-by-the-pandemic leisure industry group recorded a negative Rs.649 million in the first quarter of 2021/22 which is however a significant improvement over the EBITDA for the first quarter of the previous financial year (negative Rs.1.46 billion).