JKH bottomline impacted by series of macro blows

John Keells Holdings PLC’s year-on-year performance for the quarter was impacted by the downturn in the group’s Sri Lankan leisure business which continued to be impacted post the Easter Sunday terror attacks, exchange losses recorded at the holding company on its foreign currency denominated cash holdings.

This is when compared to the significant exchange gains recorded in the previous year and lower finance income as a result of the deployment of cash in new investments, Krishan Balendra Chairman, John Keells Holdings PLC has said in his statement on the Interim financials for the nine months ended 31st December 2019. 

The Transportation, Consumer Foods, Retail and Financial Services industry groups recorded a growth in profit. 

The Presidential Election was concluded in November 2019 and several policy and fiscal stimulus measures have been announced by the new Government which is expected to improve consumer sentiment and economic activity. “We are encouraged that occupancy at our hotels has recovered faster than expected with forward bookings continuing to maintain an upward trend. As indicated in my message in the previous quarter, occupancy in the peak season is in line with the previous year, albeit at a moderately lower room rate,” Mr. Balendra has said. 

The Consumer Foods witnessed growth on account of an improved performance in the Beverages and Frozen Confectionery businesses driven by growth in volumes and a better sales mix.  Retail performance was driven by robust revenue growth in the Supermarkets business, which was supported by a notable contribution from new outlets and strong growth in customer footfall. The installation of external facades, mechanical and electrical services and interior works are nearing completion for the Cinnamon Life Residential and Office Towers, as planned, he has said noting that the handover will commence with the office tower from April 2020 onwards. The full completion of the project is on track for first half 2021. “The foundation work of the ‘Tri-Zen’ residential development project has now been completed with the super structure work in progress.

Group revenue at Rs.37.46 billion for the third quarter of the financial year 2019/20 is a 2 per cent increase over the Rs.36.55 billion recorded in the previous financial year. The cumulative revenue for the first nine months of the financial year 2019/20 at Rs.102.90 billion is an increase of 4 per cent over the revenue of Rs.99.34 billion recorded in the same period of the previous financial year. (DEC)