JKH starts FY26 with strong performance; EBITDA up 69% to Rs. 12.9 b

• Group PAT turns to positive Rs. 717 m in 1Q as against negative Rs. 967 m a year ago; rises 374% to Rs. 4.91 b excluding City of Dreams Sri Lanka
• Bottom line still remains negative due to impact of higher non-controlling interest on account of JKCG, where effective ownership of Group is 50%, and higher losses incurred at WPL, the project company of City of Dreams Sri Lanka
• Group revenue in 1Q rises by 64% to Rs. 114.15 b

Top blue chip John Keells Holdings PLC (JKH) has begun the new FY26 on a strong footing in the first quarter, with EBITDA reflecting a 69% year-on-year (YoY) growth to Rs. 12.97 billion.

“The Group recorded a significant growth in revenue and EBITDA primarily on account of the Retail industry group, aided by the performance of the Supermarket and New Energy Vehicle (NEV) businesses,” JKH Chairperson Krishan Balendra said in his review accompanying the interim results released yesterday.

Group revenue rose by 64% to Rs. 114.15 billion. Group Profit After Tax (PAT) at Rs. 717 million, too, was an increase over the negative Rs. 967 million recorded in the previous financial year. Group PAT, excluding City of Dreams Sri Lanka, rose by 374% to Rs. 4.91 billion.

Group Profit Before Tax (PBT) amounted to Rs. 3.11 billion, an increase over the negative Rs. 204 million in 1Q of FY25. Group PBT, excluding City of Dreams Sri Lanka, rose by 306% to Rs. 7.29 billion.

The profit attributable to equity holders in 1Q of FY26 was a negative Rs. 804 million compared to a negative Rs. 869 million a year ago. 

Balendra said that while the Group recorded a positive PAT, the profit attributable to equity holders was impacted by the higher non-controlling interest on account of John Keells CG Auto (JKCG), where the effective ownership of the Group is 50%. The profit attributable to equity holders is negative mainly due to the higher losses incurred at WPL, the project company of City of Dreams Sri Lanka, at a negative Rs. 4.19 billion (2024/25 Q1: negative Rs. 2 billion), which was partially offset by the profit recognition at JKCG.

Balendra said JKH Group marked the first full quarter of commercial operations at the West Container Terminal (WCT-1) at the Port of Colombo. He said the trajectory of volume ramp-up over the quarter at WCT-1 has exceeded expectations and operational productivity has scaled up significantly over the last few months. “At this initial stage of operations, there will be a negative impact on EBITDA since the Group recognises the share of PAT as the business is treated as an equity accounted investee,” Balendra added.

He said the remaining components of the Group’s flagship integrated resort, City of Dreams Sri Lanka, are scheduled to launch on 2 August, with the operationalisation of all elements including a top-tier international standard casino, the ultra-luxury Nuwa hotel, and the premium lifestyle focussed shopping mall.

Excluding WCT-1, the Transportation industry group EBITDA increased by 11%, mainly driven by the Group’s Bunkering business, Lanka Marine Services (LMS).

The Beverages business recorded a volume decline of 10%, in line with that witnessed in the market, due to unseasonal adverse weather conditions which prevailed across the country, while the Confectionery business recorded a volume growth of 3%, driven by both the impulse and bulk segments.

The Supermarket business recorded a strong performance during the quarter, with same store sales recording an encouraging growth of 13% driven by customer footfall growth of 17%. Growth was further aided by the contribution from new stores.

Balendra also said JKCG, the Group’s NEV business, recorded an encouraging order book. Total orders received to date have exceeded expectations. During the quarter under review, a material number of vehicles were handed over to customers.

The Group’s Leisure businesses recorded an improvement in profitability and margins driven by higher occupancies on the back of improved arrivals.

The Property industry group recorded an increase in profitability driven by sales at the Cinnamon Life, TRI-ZEN, and VIMAN residential development projects and from real estate sales in Digana, through Rajawella Holdings Ltd.

Nations Trust Bank recorded a strong growth in profitability aided by loan growth and lower impairments.