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John Keells Holdings 2015 Profit Before Tax increases to 9% in 2015
Feb 01, 2016 (LBT) - The Group profit before tax (PBT) in the third quarter of the financial year 2015/16 at Rs.5.30 billion is 1 per cent below the PBT of Rs.5.37 billion, which included capital gains of Rs.610 million, recorded in the corresponding period of the previous year. The Group profit before tax (PBT) for the first nine months of the financial year 2015/16 at Rs.13.13 billion, is an increase of 9 per cent over the PBT of Rs.12.04 billion, which included capital gains of Rs.999 million, recorded in the same period of the previous financial year.
Excluding the impact of the aforementioned capital gains, the adjusted Group PBT for the quarter and the first nine months are an increase of 11 per cent and 19 per cent, respectively, above the corresponding periods in the previous financial year.
Though the profit attributable to shareholders for the quarter at Rs.3.90 billion, is a decrease of 10 per cent from the Rs.4.33 billion recorded in the corresponding period in the previous financial year, the profit attributable to shareholders for the first nine months at Rs.9.55 billion is an increase of 5 per cent over the corresponding Rs.9.13 billion recorded in the same period of the previous financial year.
Excluding the impact of the aforementioned capital gain, the adjusted profit attributable to shareholders for the quarter and the first nine months are an increase of 5 per cent and 17 per cent, respectively, above the corresponding periods in the previous financial year.
The revenue recorded for the quarter at Rs.24.71 billion is marginally below the Rs.24.77 billion recorded in the corresponding period of the previous financial year, mainly due to Union Assurance General Limited being classified as an associate company from January 2015 onwards and the steep reduction in global oil prices which impacted the Bunkering business. The cumulative revenue for the first nine months of the financial year 2015/16 at Rs.68.38 billion is an increase of 2 per cent over the revenue of Rs.66.97 billion recorded in the same period of the previous financial year.
The Company PBT for the third quarter of 2015/16 at Rs.2.67 billion is an increase of 14 per cent over the Rs.2.33 billion recorded in the corresponding period of 2014/15. The Company PBT for the first nine months of the financial year 2015/16 at Rs.10.84 billion, inclusive of a capital gain of Rs.3.10 billion arising from the share repurchase of Union Assurance PLC, is an increase of 70 per cent over the previous financial year.
Transportation
The Transportation industry group PBT of Rs.464 million in the third quarter of 2015/16 is a decrease of 32 per cent over the third quarter of the previous financial year [2014/15 Q3: Rs.678 million]. The decline in profitability is mainly attributable to the lower contribution from the Group’s Bunkering business and to a lesser extent the Ports business. The Port of Colombo witnessed a year on year growth in excess of 5 per cent overall, which underscores the potential and augurs well for capacity led growth. The Bunkering business maintained its market share during the quarter under review. However, revenue and profitability were significantly impacted due to the steep reduction in global oil prices where inventory purchased at higher prices had to be marketed at prevailing market prices. DHL Keells recorded an improvement in performance compared to the corresponding period of the last financial year due to the continued growth in its active customer base.
Leisure
The Leisure industry group PBT of Rs.1.22 billion in the third quarter of 2015/16 is a decrease of 13 per cent over the third quarter of the previous financial year [2014/15 Q3: Rs.1.40 billion]. The City Hotels sector, with the exception of Cinnamon Red, witnessed a decrease in occupancies against the corresponding period of the previous year due to the increased supply of room inventory within Colombo and the lower volumes generated through the corporate and MICE segments. The Sri Lankan Resorts sector witnessed an increase in average room rates although occupancies declined marginally due to increased room inventory coupled with a decrease in arrivals from the Russian market. Tourist arrivals in to the Maldives were negatively impacted by the prevailing political uncertainties and travel advisories to the country. The Destination Management business recorded an improved performance driven by the growth of the European market.
Property
The Property industry group PBT ofRs.558 million in the third quarter of 2015/16 is an increase of 48 per cent over the third quarter of the previous financial year [2014/15 Q3: Rs.376 million]. The improved performance is mainly on account of the revenue recognised, post the final tranches received as at 31 December 2015, at the “7th Sense” residential development project. The construction of Cinnamon Life is in progress with pre-sales of both the residential and commercial space continuing to be encouraging. However, the project has encountered some unforeseen delays and as such, the construction of Cinnamon Life is now expected to be completed in the calendar year 2019.
Consumer Foods and Retail
The Consumer Foods and Retail industry group PBT of Rs.1.08 billion in the third quarter of 2015/16 is an increase of 86 per cent over the third quarter of the previous financial year [2014/15 Q3: Rs.583 million]. Both the Frozen Confectionery and the Beverage businesses recorded encouraging results compared to the corresponding period of the previous financial year. The improved performance is mainly attributable to the double digit volume growth on account of positive consumer sentiment. Keells Foods Products witnessed an increase in volumes and profitability with the overall performance being in line with expectations. The Retail sector recorded a significant improvement in performance as it continued to benefit from year-on-year growth in same store sales due to a notable increase in footfall coupled with the incremental contribution from recently established outlets.
Financial Services
The Financial Services industry group PBT of Rs.1.09 billion in the third quarter of 2015/16 is a decline of 1 per cent over the third quarter of the previous financial year [2014/15 Q3: Rs.1.10 billion]. The decline is due to Union Assurance PLC treating the post segregated general insurance company as an associate following the sale of a 78 per cent stake in January 2015. The Financial Services industry group PBT, excluding the general insurance business, increased by 9 per cent to Rs.1.06 billion [2014/15 Q3: Rs.974 million]. The performance of the Life Insurance business was in line with expectations, with gross written premiums recording encouraging growth. Nations Trust Bank maintained robust loan growth although the reduction in net interest margins impacted the growth in profitability during the quarter under review.
Information Technology
The Information Technology industry group PBT of Rs.92 million in the third quarter of 2015/16 is a 24 per cent decrease over the third quarter of the previous financial year [2014/15 Q3: Rs.120 million]. The Office Automation business, which is the largest contributor to profits, witnessed a decline in its performance mainly due to lower margins on account of the depreciation of the Rupee, despite recording a growth in volumes across its three main product segments.
Other, Including Plantation Services
Other, comprising of the Holding Company and other investments, and the Plantation Services sector, recorded a PBT of Rs.796 million in the third quarter of 2015/16, which is a decrease of 29 per cent over the third quarter of the previous financial year [2014/15 Q3: Rs.1.11 billion]. The decline in PBT is mainly attributable to the capital gain of Rs.610 million recorded in the third quarter of the previous financial year. The performance of the Plantation Services sector was negatively impacted as tea prices continued to remain depressed.
Sustainability Initiatives
The Group’s carbon footprint per million rupees of revenue increased by 6 per cent to 0.77 MT and the water withdrawn per million rupees of revenue increased by 11 per cent to 18.73 cubic meters. The actual efficiencies achieved by the Group are not reflected in the “per million rupees of revenue” indicator because of the Group revenue figure being impacted by Financial Services and Transportation revenues as described before. It is of note that both Leisure and Consumer Foods & Retail industry groups, which are the largest contributors to carbon footprint and water consumption, demonstrated improvements in their per revenue performance. Group employees were provided with approximately 7.7 hours of training per employee, whilst 53 occupational injuries were reported in total during the period under review.
http://www.lbt.lk/index.php?Itemid=76&catid=54:business&id=10361:john-keells-holdings-2015-profit-before-tax-increases-to-9-in-2015-&option=com_content&view=article
Feb 01, 2016 (LBT) - The Group profit before tax (PBT) in the third quarter of the financial year 2015/16 at Rs.5.30 billion is 1 per cent below the PBT of Rs.5.37 billion, which included capital gains of Rs.610 million, recorded in the corresponding period of the previous year. The Group profit before tax (PBT) for the first nine months of the financial year 2015/16 at Rs.13.13 billion, is an increase of 9 per cent over the PBT of Rs.12.04 billion, which included capital gains of Rs.999 million, recorded in the same period of the previous financial year.
Excluding the impact of the aforementioned capital gains, the adjusted Group PBT for the quarter and the first nine months are an increase of 11 per cent and 19 per cent, respectively, above the corresponding periods in the previous financial year.
Though the profit attributable to shareholders for the quarter at Rs.3.90 billion, is a decrease of 10 per cent from the Rs.4.33 billion recorded in the corresponding period in the previous financial year, the profit attributable to shareholders for the first nine months at Rs.9.55 billion is an increase of 5 per cent over the corresponding Rs.9.13 billion recorded in the same period of the previous financial year.
Excluding the impact of the aforementioned capital gain, the adjusted profit attributable to shareholders for the quarter and the first nine months are an increase of 5 per cent and 17 per cent, respectively, above the corresponding periods in the previous financial year.
The revenue recorded for the quarter at Rs.24.71 billion is marginally below the Rs.24.77 billion recorded in the corresponding period of the previous financial year, mainly due to Union Assurance General Limited being classified as an associate company from January 2015 onwards and the steep reduction in global oil prices which impacted the Bunkering business. The cumulative revenue for the first nine months of the financial year 2015/16 at Rs.68.38 billion is an increase of 2 per cent over the revenue of Rs.66.97 billion recorded in the same period of the previous financial year.
The Company PBT for the third quarter of 2015/16 at Rs.2.67 billion is an increase of 14 per cent over the Rs.2.33 billion recorded in the corresponding period of 2014/15. The Company PBT for the first nine months of the financial year 2015/16 at Rs.10.84 billion, inclusive of a capital gain of Rs.3.10 billion arising from the share repurchase of Union Assurance PLC, is an increase of 70 per cent over the previous financial year.
Transportation
The Transportation industry group PBT of Rs.464 million in the third quarter of 2015/16 is a decrease of 32 per cent over the third quarter of the previous financial year [2014/15 Q3: Rs.678 million]. The decline in profitability is mainly attributable to the lower contribution from the Group’s Bunkering business and to a lesser extent the Ports business. The Port of Colombo witnessed a year on year growth in excess of 5 per cent overall, which underscores the potential and augurs well for capacity led growth. The Bunkering business maintained its market share during the quarter under review. However, revenue and profitability were significantly impacted due to the steep reduction in global oil prices where inventory purchased at higher prices had to be marketed at prevailing market prices. DHL Keells recorded an improvement in performance compared to the corresponding period of the last financial year due to the continued growth in its active customer base.
Leisure
The Leisure industry group PBT of Rs.1.22 billion in the third quarter of 2015/16 is a decrease of 13 per cent over the third quarter of the previous financial year [2014/15 Q3: Rs.1.40 billion]. The City Hotels sector, with the exception of Cinnamon Red, witnessed a decrease in occupancies against the corresponding period of the previous year due to the increased supply of room inventory within Colombo and the lower volumes generated through the corporate and MICE segments. The Sri Lankan Resorts sector witnessed an increase in average room rates although occupancies declined marginally due to increased room inventory coupled with a decrease in arrivals from the Russian market. Tourist arrivals in to the Maldives were negatively impacted by the prevailing political uncertainties and travel advisories to the country. The Destination Management business recorded an improved performance driven by the growth of the European market.
Property
The Property industry group PBT ofRs.558 million in the third quarter of 2015/16 is an increase of 48 per cent over the third quarter of the previous financial year [2014/15 Q3: Rs.376 million]. The improved performance is mainly on account of the revenue recognised, post the final tranches received as at 31 December 2015, at the “7th Sense” residential development project. The construction of Cinnamon Life is in progress with pre-sales of both the residential and commercial space continuing to be encouraging. However, the project has encountered some unforeseen delays and as such, the construction of Cinnamon Life is now expected to be completed in the calendar year 2019.
Consumer Foods and Retail
The Consumer Foods and Retail industry group PBT of Rs.1.08 billion in the third quarter of 2015/16 is an increase of 86 per cent over the third quarter of the previous financial year [2014/15 Q3: Rs.583 million]. Both the Frozen Confectionery and the Beverage businesses recorded encouraging results compared to the corresponding period of the previous financial year. The improved performance is mainly attributable to the double digit volume growth on account of positive consumer sentiment. Keells Foods Products witnessed an increase in volumes and profitability with the overall performance being in line with expectations. The Retail sector recorded a significant improvement in performance as it continued to benefit from year-on-year growth in same store sales due to a notable increase in footfall coupled with the incremental contribution from recently established outlets.
Financial Services
The Financial Services industry group PBT of Rs.1.09 billion in the third quarter of 2015/16 is a decline of 1 per cent over the third quarter of the previous financial year [2014/15 Q3: Rs.1.10 billion]. The decline is due to Union Assurance PLC treating the post segregated general insurance company as an associate following the sale of a 78 per cent stake in January 2015. The Financial Services industry group PBT, excluding the general insurance business, increased by 9 per cent to Rs.1.06 billion [2014/15 Q3: Rs.974 million]. The performance of the Life Insurance business was in line with expectations, with gross written premiums recording encouraging growth. Nations Trust Bank maintained robust loan growth although the reduction in net interest margins impacted the growth in profitability during the quarter under review.
Information Technology
The Information Technology industry group PBT of Rs.92 million in the third quarter of 2015/16 is a 24 per cent decrease over the third quarter of the previous financial year [2014/15 Q3: Rs.120 million]. The Office Automation business, which is the largest contributor to profits, witnessed a decline in its performance mainly due to lower margins on account of the depreciation of the Rupee, despite recording a growth in volumes across its three main product segments.
Other, Including Plantation Services
Other, comprising of the Holding Company and other investments, and the Plantation Services sector, recorded a PBT of Rs.796 million in the third quarter of 2015/16, which is a decrease of 29 per cent over the third quarter of the previous financial year [2014/15 Q3: Rs.1.11 billion]. The decline in PBT is mainly attributable to the capital gain of Rs.610 million recorded in the third quarter of the previous financial year. The performance of the Plantation Services sector was negatively impacted as tea prices continued to remain depressed.
Sustainability Initiatives
The Group’s carbon footprint per million rupees of revenue increased by 6 per cent to 0.77 MT and the water withdrawn per million rupees of revenue increased by 11 per cent to 18.73 cubic meters. The actual efficiencies achieved by the Group are not reflected in the “per million rupees of revenue” indicator because of the Group revenue figure being impacted by Financial Services and Transportation revenues as described before. It is of note that both Leisure and Consumer Foods & Retail industry groups, which are the largest contributors to carbon footprint and water consumption, demonstrated improvements in their per revenue performance. Group employees were provided with approximately 7.7 hours of training per employee, whilst 53 occupational injuries were reported in total during the period under review.
http://www.lbt.lk/index.php?Itemid=76&catid=54:business&id=10361:john-keells-holdings-2015-profit-before-tax-increases-to-9-in-2015-&option=com_content&view=article
