Strong performance by JKH; EBITDA up 126% to Rs.9.53 bln in Q3

The leisure business of John Keells Holdings (JKH) which suffered badly during the lockdown and COVID-19related impacts, recorded a significant turnaround in 3rd Q 2021/22 with EBITDA recorded at Rs.1.23 billion compared to a negative Rs.1.01 billion in the corresponding quarter of the previous year.

This turnaround has continued in the month of January 2022 and a strong recovery is expected in the coming months, the company said in releasing its third quarter results on Wednesday.

The company in a statement said the Maldivian Resorts segment continued its encouraging recovery momentum where the occupancy at these hotels were at pre-pandemic levels during the quarter whilst the Colombo Hotels and Sri Lankan resorts segments recorded a positive EBITDA in the month of December 2021 on the back of easing of restrictions from October 2021 onwards.

As far as the overall performance is concerned, group EBITDA showed a significant increase of 126 per cent to Rs.9.53 billion during the quarter under review against the comparative period [2020/21 Q3: Rs.4.21 billion].

The group’s businesses recorded strong growth in profitability compared to the third quarter of the previous year on the back of a fast recovery momentum with most of the businesses reaching pre COVID-19 levels post the easing of restrictions.

It said the Consumer Foods industry group continued its strong recovery momentum with all segments recording strong double-digit growth in volumes during the quarter, with volumes of the Beverages and Frozen Confectionery businesses reaching pre-pandemic levels.

The Retail industry group recorded an encouraging performance with same store sales growth driving profitability in the Supermarket business, whilst the mobile phones business recorded a strong increase in volumes and profitability.

The statement said the residential and commercial components of the ‘Cinnamon Life’ project are now completed, with the second residential apartment tower ‘The Residence at Cinnamon Life’, ready for customer handover from February 2022 onwards.

The US$395 million loan at ‘Cinnamon Life’, which was due for repayment by July 2022, was refinanced in December 2021 through a syndicated facility during the quarter under review. The new facility comprises a $225 million long term loan component and a $100 million bridging facility for a six-month period to align with the maturity date of July 2022 under the original facility.

It said the Colombo West International Container Terminal (Private) Limited (CWIT), the project company for the development of the West Container Terminal-1 (WCT-1) in the Port of Colombo, is in the final stages of fulfilling the conditions precedent in the Build, Operate and Transfer (BOT) agreement, and the handover of the site for the commencement of construction is expected to take place in the ensuing quarter.