JKH’s EBITDA tops Rs. 80 b mark with 75% growth

 Chairperson Krishan Balendra

• Says recent investments begin to contribute indicating JKH has crossed an inflection point of moving from capital deployment to cash generation
• Recurring PBT up 143% to Rs. 35.7 b; bottom line up 155% to Rs. 13 b
• Group revenue gain by 61% to Rs. 572 b
• Declares 10 cents final interim dividend per share doubling total to 30 cents in FY26 worth Rs. 4.42 b

John Keells Holdings PLC (JKH) yesterday reported a strong financial performance for FY2025/26, with Group EBITDA increasing 75% to Rs.80.01 billion, reflecting the contribution of investments made over the past several years and the continued performance of the Group’s established businesses.

Group recurring EBITDA increased 71% to Rs. 78.05 billion, compared to Rs. 45.69 billion in the previous year, driven primarily by Retail, Transportation and Leisure. Recurring profit before tax rose 143% to Rs. 35.72 billion, while recurring profit attributable to equity holders of the parent increased 155% to Rs. 13.24 billion.

“The year under review reflected meaningful progress for the Group, underpinned by strong

financial performance and encouraging momentum across new initiatives and ventures,” JKH Chairperson Krishan Balendra told shareholders in his review for FY26.

“Over the past several years, we have focused on building the foundations for the next phase of growth through significant deployment of capital. I am pleased that, as we have expected and worked towards, these efforts have begun to translate into improved operating outcomes,

broad-based earnings contributions and stronger returns, alongside the continued performance of our established businesses,” Balendra added. 

JKH Chairperson also said the Group is entering its next phase with strong momentum from the financial performance during this year and from a position of strength considering the broad-based earnings contribution.

“This is supported by a high-quality portfolio, with major investments beginning to contribute positively, where, I believe, we have crossed an inflection point of moving from capital deployment to cash generation,” he emphasised.

 “While the financial returns are improving, our major investments are still ramping up with potential for significant growth. We remain focused on building enduring value through prudent capital stewardship, operational excellence, and a long term perspective,” Balendra added. 

JKH has also announced a final interim dividend of 10 cents per share to be paid on or before 24 June 2026, aligned with the first and second interim dividend paid in November 2025 and February 2026.

The dividend declared for 2025/26 is 30 cents per share up from 15 cents per share in FY25 reflecting the improved business momentum. The outlay for the total dividend paid is Rs. 4.42 billion, which is an increase compared to Rs. 2.46 billion in the previous year.

Overall funding requirements of JKH in FY26 reduced materially in line with expectations, while net debt to EBITDA stood at approximately 2 times and net debt to equity at approximately 31%.

City of Dreams Sri Lanka recorded positive EBITDA for the full year, following the completion and launch of the remaining components of the integrated resort. Cinnamon Life’s conference and event spaces attracted interest from local and international organisers, while casino operations showed an encouraging pick-up from the fourth quarter onwards.

Colombo West International Terminal, the project company of WCT-1, recorded strong throughput growth during the year, supported by an improving volume mix. The business delivered a positive profit after tax ahead of expectations, despite recognising depreciation relating to phase 1, and has reached full utilisation of phase 1 capacity based on its latest monthly run-rate.

John Keells CG Auto recorded an exceptional year, supported in part by pent-up demand and the brand positioning and vehicle range of BYD.

The Supermarket business recorded approximately 14% growth in same store sales, driven primarily by a 14.3% increase in footfall. The Beverages and Confectionery businesses recorded strong volume growth, with Beverages benefiting from higher margins, while Confectionery margins were impacted by higher raw material costs and expenses linked to new product introductions.

The Leisure industry group recorded significant EBITDA growth, with all sectors contributing to the improvement in profitability, driven by improved occupancies.

John Keells Properties launched Vauxhall DSTRCT in March 2026, a 749-unit residential development in Colombo 02.

Nations Trust Bank (NTB) recorded improved profitability, aided by strong loan growth and a continued reduction in impairments. NTB completed the acquisition of HSBC Sri Lanka’s retail banking franchise with effect from 1 May 2026, with live operations commencing thereafter. Union Assurance recorded encouraging double-digit growth in gross written premiums.

Group ROCE improved to 9.0% in FY2025/26 from 5.1% in the previous year. Excluding the integrated resort, which recently commenced operations, the remainder of the portfolio delivered a ROCE of 17%, reflecting the underlying return profile of the Group’s established businesses.

The year’s performance reinforced the strength of the Group’s established businesses and the growing contribution of investments made over the past several years, positioning JKH for its next phase of growth.