JKH 9-mth pre-tax profit up 22 per cent

The John Keells Group’s profit before tax (PBT) grew by 31 per cent to Rs. 6.72 billion in the third quarter with PBT for the first nine months of the financial year 2016/17 at Rs. 15.48 billion.

This was 22 per cent growth aided by its leisure, consumer foods and retail, transportation, financial services and transportation, the group’s accounts showed.

Group revenue at Rs. 27.94 billion for the quarter was a 12 per cent increase and for the first nine months it grew by 11 per cent to Rs. 76.43 billion.

The transportation industry group’s PBT of Rs. 845 million in the third quarter of 2016/17 is an increase of 100 per cent over the third quarter of the previous financial year, JKH Chairman Susantha Ratnayake said adding that this is mainly attributable to the group’s ports and shipping, and bunkering businesses.

The leisure industry group’s PBT of Rs.1.36 billion in the third quarter of 2016/17 was an increase of 12 per cent.

The property industry PBT of Rs. 196 million in the third quarter of 2016/17 was down by 65 per cent. The third quarter of the previous year included a substantial recognition of revenue on the ‘7th Sense’ on Gregory’s Road residential development.

The consumer foods and retail industry group’s PBT of Rs. 1.29 billion in the third quarter of 2016/17 was an increase of 19 per cent, with both sectors contributing to the improved performance.

Mr. Ratnayake has said profitability of the frozen confectionery and beverage businesses was driven by double digit volume growth and improved margins. During the quarter under review, three new outlets in the retail sector ((Keells Super) were opened, bringing the total store count to 61 outlets as at 31 December 2016.

The financial services industry group’s PBT grew by 17 per cent to Rs. 1.14 billion in the third quarter. The increase in profitability is on account of the performance of Nations Trust Bank, which witnessed robust loan growth, together with Union Assurance Plc, where gross written premiums recorded encouraging double digit growth.

The information technology industry group’s PBT saw a significant increase to Rs. 195 million from Rs. 92 million a year earlier. The office automation business, which is the largest contributor to profits, witnessed an improvement in its performance due to double digit growth in volumes across its three main product segments.