JKH June quarter net up 9% to Rs.2.4 bn

Sri Lanka’s diversified conglomerate and premier bluechip, John Keells Holdings PLC (JKH) increased its June quarter net profit by a moderate 9.0 percent to Rs.2.4 billion or Rs.1.74 a share supported by stronger port operations and growing consumer food and retail business, the interim results showed.

The revenue rose by 8.0 percent year-on-year (yoy) to Rs.22.7 billion on the back of 6.0 percent yoy growth in cost of sales which resulted in a gross profit of Rs.6.6 billion, an increase of 12.0 percent.

JKH and all its group companies charged the existing tax rate – which is higher in most cases- as the Budget 2016 proposed tax rates have not been enacted or substantively enacted.

“If the proposed tax rates were applied in computing the tax expense (including deferred tax), the Group’s tax expense for the quarter, would have decreased by approximately Rs. 138 million,” the group said in a note to the financial statements.

During the quarter the group charged a corporate income tax of Rs.936.5 million, an increase of 44 percent yoy. The profit before tax of the group was Rs.3.6 billion, up 17 percent from the same period last year.

Meanwhile the group’s finance income also grew sharply by 32 percent yoy to Rs.2.1 billion as the group has purchased financial investments worth Rs.5.4 billion during the year to June 30, 2016.