John Keells Holdings PBT tops Rs 19.08b

John Keells Holdings profit before tax (PBT) for the financial year ended March 31, 2015 was at Rs.19.08 billion. This was 25% above that of 2013/2014.

The Group revenue has increased by 6 percent to Rs.91.58 billion, according to Chairman, Susantha Ratnayake.The Leisure industry group reported revenues of Rs.23.36 billion and a PAT of Rs.4.86 billion, contributing 23 percent and 31 percent to Group revenue and PAT respectively. The industry group continued to maintain its position as the largest contributor to Group PAT.

The 3-4 star room inventories within the City of Colombo saw a substantial growth in the year under review.The Property industry group reported revenues of Rs.5.69 billion and a PAT of Rs.1.43 billion, contributing 6 percent and 9 percent to Group revenue and PAT respectively. The two residential developments “7th Sense” on Gregory’s Road and “OnThree20” recorded an increase in revenue recognised in the year under review.

The transportation industry group reported revenues, including the share of revenues from the associate companies,of Rs.19.91 billion and a PAT of Rs.2.34 billion, contributing 19 percent and 15 percent to Group revenue and PAT respectively.

Various restrictions were placed on the private sector within both the port and bunkering industries limited the growth potential for South Asia Gateway Terminals (SAGT) and Lanka Marine Services (LMS) in the past. However, improved prospects for greater private sector participation in both these industries, going forward, are likely to create additional avenues for growth through the expansion of operations in the Group’s Port and Bunkering businesses.

Despite a 14 percent growth in container volumes recorded over the entire Port of Colombo for the calendar year 2014, SAGT recorded a marginal decline in volumes towards the latter part of the year under review.

The performance of the bunkering business was negatively impacted by the significant decline in oil prices which lowered the overall value of sales, whilst the increasingly fragmented operating environment continued to exert pressure on margins.The Consumer Foods and Retail industry group recorded revenues of Rs.29.76 billion and a PAT of Rs.1.80 billion, contributing 29 per cent and 11 per cent to Group revenue and PAT respectively.

The Financial Services industry group recorded revenues, including the share of revenues from associate companies, of Rs.12.99 billion and a PAT of Rs.3.02 billion, contributing 13 per cent and 19 per cent to Group revenue and PAT respectively.

The Information Technology industry group recorded revenues of Rs.7.21 billion and a PAT of Rs.280 million, contributing seven percent and two percent to Group revenue and PAT respectively. The Plantation Services sector recorded revenues of Rs.3.17 billion and a PAT of Rs.193 million, contributing 3 per cent and 1 per cent to Group revenue and PAT respectively.

Political unrest and economic volatility witnessed across some of the key destinations for tea exports resulted in a sharp decline in tea prices and negatively impacted the profitability. Others, comprising of the Holding Company and other investments, and the Plantation Services sector, together, recorded revenues of Rs.3.47 billion and a PAT of Rs.2.03 billion for 2014/15.

Courtesy: Daily News 01 June 2015