Tough 2Q for JKH

Friday, 8 November 2013 06:56 - - {{hitsCtrl.values.hits}}

Profits down as most businesses continue to face challenging market conditions John Keells Holdings (JKH) yesterday reported a tough second quarter with a dip in profits, as most businesses continue to face challenging market conditions. JKH’s net profit for the quarter ended on 30 September 2013 was Rs. 2.058 billion, down by 15%, dragging the first half figure to Rs. 3.64

billion, lower by 10% year on year. “From a macroeconomic perspective, in spite of the reduction in interest rates and continued stable inflation, we are yet to see the full impact of these benefits flow through to the real economy. As a result, we continue to witness relatively dampened consumer sentiment and challenging macroeconomic conditions,” JKH Chairman Susantha Ratnayake said in his review accompanying interim results. “The uncertainty created through the events in the global economy has compounded the volatility faced by emerging markets. We however remain confident of the future considering the strong fundamentals of the Group which will enable us to weather periods of uncertainty,” he added. Group revenues at Rs. 21.08 billion and Rs. 41.09 billion in the second quarter and the first half of the financial year 2013/2014 were 2% and 1% above a year earlier. The Group incurred a non-cash charge of Rs. 72 million during the quarter for Employee Share Option Plans (ESOPs) under the Sri Lanka Accounting Standards; SLFRS 2 on share based payments and a nonrecurring impairment charge of approximately Rs. 141 million for the quarter on account of the demolition of buildings at Glennie Street and Justice Akbar Mawatha.