ECONOMYNEXT – Sri Lanka’s John Keells Holdings reported profits of 1.36 billion rupees in the September 2024 quarter from a loss of 574 million rupees last year, helped by lower financial costs and stronger revenues and margins including from shipping and consumer goods.
The group reported earnings of 91 cents per share for the quarter (JKH also made a rights issue). For the six months to September JKH reported earnings of 33 cents per share on total profits of 499 million rupees, down from 892 million last year.
Group profits were helped by a 1.94 billion rupees non-cash gain on a 213 million US dollar loan owed by Waterfront Properties (Pvt) Ltd as the rupee appreciated. Rupee appreciation also reduced translated income from Maldivian resorts.
With the partial conversion of the convertible debentures issued to HWIC Asia Fund (HWIC) in February 2024, the interest cost on the instrument fell to 550 million rupees from 991 million rupees, JKH said.
Revenues of JKH, which has interests in financial services, container terminals, bunkering, tourism in both Sri Lanka and the Maldives as well as consumer goods, grew 20 percent to 76.9 billion rupees in the September quarter.
Of that Insurance revenues grew 14 percent to 5.0 billion rupees, with premiums driven also by new business, the group told shareholders.
Cost of sales grew 20 percent, to 62 billion rupees and gross profits grew 22 percent to 14.2 billion rupees.
Manufacturing and retail operations were helped by stable or falling prices including of raw materials and higher customer demand, JKH said.
Sri Lanka recorded deflation in recent months, with the central bank operating deflationary policy and allowing the exchange rate to appreciate.
Falling electricity prices helped hotels and other businesses, while container and bunkering was helped by disruptions in the Red Sea which was driving up activity in Colombo. (Colombo/Nov05/2024)