JKH profits marginally up in 1stQ 2016/17
View(s):Group profit before tax (PBT) at John Keells Holdings (JKH) reached Rs.3.58 billion in the first quarter (April-June) of the 2016/17 financial year, up 7 per cent over the same period in the previous year. In JKH Chairman Susantha Ratnayake’s report to shareholders which was released to the media, it was stated that profit attributable to equity holders was Rs.2.37 billion, up of 9 per cent from the earlier period. Revenue rose by 8 per cent to Rs.22.73 billion. The report said the South Asia Gateway Terminals recorded double digit growth in throughput while the group’s bunkering business recorded an improvement in margins.
However profitability was impacted due to a decline in volumes resulting from adverse monsoonal conditions which prevailed during the quarter. JKH leisure sector profits grew marginally by 1 per cent, with Mr. Ratnayake saying “whilst overall arrivals to Sri Lanka demonstrated strong growth in the first quarter, the negative publicity and travel warnings following the flooding and landslides in May impacted arrivals in the month of June”. 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 sector profit fell by 72 per cent in the first quarter while the consumer foods and retail industry group saw profit (pre-tax) grow by 48 per cent. “The retail sector recorded a strong performance aided by an increase in average basket values and a steady growth in footfall contributing positively towards a year-on-year growth in same store sales, together with a notable contribution from the newly opened outlets.
Surprisingly the Information Technology industry group, which in most places is doing well, saw pre-tax profit drop sharply by 63 per cent with the group attributing it to a one-off provision for a doubtful debt in its Business Process Outsourcing operation.