John Keells Holdings (JKH) PLC has a reported a 5% growth in Group revenue during the first quarter of the year of Rs 31.74 billion compared to the Rs.30.16 billion recorded in the previous financial year.
The transportation, consumer foods and retail industry groups continued their growth momentum from the previous quarter despite the disruptions post the Easter Sunday terror attacks which occurred early in the quarter.
The underlying performance of the Group set out below, is depicted after adjusting for the new Accounting standard SLFRS 16 which came to effect this year, for fuller disclosure. Accordingly, EBITDA in 2018/19 is comparatively adjusted for the impact of SLFRS 16, on a like-with-like basis against the EBITDA in 2019/20 (adjusted EBITDA).
The transportation industry group EBITDA of Rs.1.06 billion for Q1 of FY2019/20 was a 14% increase over the adjusted EBITDA of Rs.929 million for the first quarter of 2018/19. The gains were attributable to the strong performance of the Group’s Ports and Shipping business, South Asia Gateway Terminals, which enjoyed higher volumes and an improved volume mix. Consumer Foods industry group witnessed growth on account of improved performance in the Beverages and Frozen Confectionery businesses.
The Consumer Foods industry group EBITDA of Rs. 843 million in the first quarter of 2019/20 is an increase of 61 per cent over the adjusted EBITDA for the first quarter of the previous financial year [2018/19 Q1: Rs.522 million].
Retail industry group recorded a robust revenue growth of 20% which was driven by a strong performance in the Supermarkets business, supported by the rebranding initiative, expansion of outlets and a pick-up in average basket values.
Retail recorded an EBITDA of Rs.1.09 billion compared with the adjusted EBITDA of Rs.573 million in the same period last year.
The Group’s Sri Lankan leisure business was significantly impacted by the Easter terror attacks and EBITDA for the first quarter of 2019/20 was a negative Rs.332 million, compared to the Rs 228 million (adjusted) recorded in 2018/19 Q1.
The city hotels sector recorded a decline in both occupancies and average room rates but maintained its fair share of available rooms in the 5-star category in the quarter under review.
The Maldives resorts segment recorded a strong growth driven by higher average room rates of the newly refurbished water bungalows and over water suites at Ellaidhoo Maldives by Cinnamon and Cinnamon Dhonveli Maldives.
The Property industry group recorded a negative EBITDA of Rs.12 million in the first quarter, a year on year decrease compared to Rs18 million (adjusted) recorded the previous year.
In the Property Industry Group, the Cinnamon Life project marked a key milestone in its construction in June 2019, with the topping-off of all its six buildings. Construction is now focused on the installation of the façade, mechanical and electrical services and interior works.
The financial services industry group recorded an 11% drop in EBITDA (2019/20 Q1: Rs.774 million versus 2018/19 Q1: Rs.865 million] while other, including Information Technology and Plantation Services sectors recorded an EBITDA of Rs.625 million in the first quarter of 2019/20 over the adjusted EBITDA for the first quarter of the previous financial year [2018/19 Q1: Rs.1.38 billion].
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