Thursday Jan 29, 2026
Thursday Jan 29, 2026
Thursday, 29 January 2026 05:28 - - {{hitsCtrl.values.hits}}
Chairperson Krishan Balendra
Top blue chip John Keells Holdings PLC (JKH) yesterday announced strong earnings for the third quarter with all businesses reporting improved profitability driven by momentum across the Group portfolio. Group revenue rose by 54% to Rs. 125.05 billion in 3Q of the financial year 2025/26.
Cumulative Group revenue for the first nine months of FY26 grew by 69% to Rs. 383.96 billion.
Group earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 68% to Rs. 23.76 billion in 3Q. Cumulative Group EBITDA for the first nine months of the financial year 2025/26 rose by 86% to Rs. 55.10 billion.
During the quarter under review, the Group recorded fair value gains on investment property amounting to Rs. 2.30 billion (2024/25 3Q: Rs. 955 million), and net exchange losses of Rs. 759 million (2024/25 3Q: gain of Rs. 782 million), mainly due to the impact of the depreciation of the Rupee on the foreign currency-denominated loan at City of Dreams Sri Lanka.
Group Profit Before Tax (PBT) rose by 113% to Rs. 12.89 billion.
Chairperson Krishan Balendra said : “The growth in PBT is on account of the strong performance of the Retail and Leisure businesses. This is despite the impact of a higher depreciation charge and interest expenses due to full operations at City of Dreams Sri Lanka as against the previous year, where operations commenced in mid-October last year and encountered a ramp up period.”
Cumulative Group PBT for the first nine months rose by 193% to Rs. 23.79 billion.
Profit attributable to equity holders of the parent in 3Q was Rs. 6.48 billion, including fair value gains on investment property and net exchange losses amounting to Rs. 1.45 billion. Last year’s figure of Rs. 2.85 billion included fair value gains on investment property and net exchange gains amounting to Rs. 1.70 billion. The first nine months’ profit attributable to equity holders was Rs. 7.33 billion, as against Rs. 3.34 billion a year ago.
JKH also announced a second interim dividend of Rs. 0. 10 for FY2026, same as the first interim dividend paid in November 2025.
“This reflects the expectation that the current momentum of performance will sustain or further improve going forward,” Balendra said.
The outlay for the second interim dividend is Rs. 1.77 billion, which is an increase compared to Rs. 881 million in the previous year.
The operationalisation of two of the Group’s largest projects, the City of Dreams Sri Lanka integrated resort and the West Container Terminal (WCT-1) at the Port of Colombo, continued to progress well. “The encouraging quarter-on-quarter momentum demonstrates the strong ramp-up potential of both projects,” he added.
The Chairperson also said while the operations of the Group were disrupted during the few days of Cyclone Ditwah, there was no significant operational or financial impact as a direct result of the cyclone and related flooding.
City of Dreams Sri Lanka recorded a positive EBITDA for the first time since commencing operations, with an EBITDA of Rs. 1.43 billion, which includes fair value gains on investment property amounting to Rs. 606 million. EBITDA for the corresponding period of the previous financial year was negative Rs. 1.57 billion, and did not include fair value gains on investment property.
Balendra said the Cinnamon Life and Nuwa hotels continue to be positively received by the market, both locally and internationally, while performance of the casino has seen a steady improvement.
JKH’s Sri Lankan Leisure businesses recorded a strong performance driven by an improvement in occupancy on the back of increased arrivals, he added.
Colombo West International Terminal, the project company of the WCT-1, continued to record steady month-on-month growth in throughput, supported by an improved volume mix that contributed positively to profitability. The business recorded a positive Profit After Tax (PAT) ahead of expectations, despite recognising depreciation and a portion of finance expenses relating to phase 1, with the quantum relevant to phase 2 being capitalised, following the commencement of operations.
Despite the ongoing Sri Lanka Customs dispute and the normalisation of pent-up demand, John Keells CG Auto (JKCG) recorded a strong performance during the quarter. JKCG has a very healthy order pipeline with over 3,900 vehicles to be delivered in the ensuing months.
“All the other businesses showed growth during the quarter under review with expectations of witnessing growth in the ensuing quarter,” Balendra added.
