John Keells Group EBITDA recorded a significant improvement to Rs.6.41 billion during the 2Q 2021/22 which is a 93% increase against the comparative period [2020/21 Q2: Rs.3.32 billion].
The Group’s businesses, except for consumer foods and the Supermarket business, recorded a strong growth in profitability compared to the second quarter of the previous year, despite the quarantine curfew which prevailed for a period of six weeks due to the third wave of COVID-19 cases which impacted business activity.
It should be noted that the corresponding quarter in the previous year was a relatively more ‘normal’ quarter, with no COVID-19 related disruptions, where the country benefited from a faster recovery momentum post the outbreak of the first wave with most of our businesses reaching pre COVID-19 levels. Since the gradual easing of the restrictions from end September 2021 and supported by the high vaccination rates of the population, business activity has seen a strong recovery.
The Leisure industry group, in particular, recorded a significant turnaround in performance with the Q2 2021/22 EBITDA almost at break-even levels at a negative Rs.46 million compared to a negative Rs.1.19 billion in the corresponding quarter of the previous year. The Maldivian Resorts segment continued its encouraging recovery momentum from the previous quarter where the occupancy at our hotels was higher than anticipated.
The quarantine curfew during the quarter under review significantly impacted the previously witnessed recovery momentum in volumes and same store sales in the consumer foods businesses and the supermarket business, respectively.
“While Sri Lanka endured an extremely challenging couple of months in August it is very encouraging to witness the significant decline in the current number of daily cases, and mortality, in particular, due to the healthcare guidelines and the successful vaccination drive. We believe a more sustained recovery can be expected as Sri Lanka has reached high levels of vaccination,” said Chairman JKH, Krishan Balendra.
“With the significantly improved healthcare situation in Sri Lanka, the authorities have relaxed the healthcare restrictions on arrivals into the country. This is a significant step for setting the stage for the re-opening of the country for tourism which will be a key catalyst to drive the recovery momentum for the country.”
The mobile phones business, which is included under Retail, recorded a strong increase in profitability driven by a strong growth in volumes. The Group’s carbon footprint per million rupees of revenue decreased by 26 % to 0.52 MT while the water withdrawal per million rupees of revenue decreased by 9 % to 11.93 cubic meters.
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