JKH posts Rs 7.33 b profit

Excellent nine month results :

John Keells Group profit before tax (PBT) of Rs 2.36 billion for the third quarter and Rs 7.33 billion for the nine months ended December 31, 2010 reflect an increase of 57 percent and 118 percent respectively, over the PBT of Rs 1.50 billion and Rs 3.37 billion in the corresponding periods in the previous year.

The recurring PBT for the nine months, excluding the capital gains posted in the second quarter, grew by 65 percent.

JKH Chairman Susantha Ratnayake said the profits attributable to equity holders for the quarter and the nine months, of Rs 1.76 billion and Rs 5.69 billion respectively, reflect an increase of 54 percent and 141 percent over the corresponding periods in the previous year.

The revenues at Rs 15.62 billion and Rs 42.50 billion in the third quarter and the nine months were 22 percent and 25 percent above the Rs12.75 billion and Rs 34.06 billion recorded in the corresponding periods in the previous year. The company PBT of Rs 1.12 billion for the quarter and Rs 4.44 billion for the nine months reflect an increase of 29 percent and 57 percent above the PBT of Rs 862 million and Rs 2.83 billion in the corresponding periods in the previous year. The PBT for the nine months include the capital gains posted in the second quarter.

Transport sector PBT of Rs 1.97 billion was an increase of 18 percent over the nine months of 2009 /10 which recorded Rs 1.66 billion. Leisure industry group continued to perform as expected with a PBT of Rs 955 million for the nine months, an increase of 501 percent compared to the Rs 159 million recorded in the same period last year.

Property recorded a PBT of Rs 512 million for the nine months, a 194 percent increase over the Rs 174 million recorded in the same period last year.

The cyclical nature of the revenue recognition of the Emperor project is the main reason for the variances from the previous year.

“We have seen positive interest from potential buyers for the “OnThree20”, the 475 apartment development, situated in Union Place and launched in October 2010, with initial bookings for over 70 per cent of the apartments, the construction of which will commence in May 2011,” Ratnayake said.

Consumer Foods and Retail PBT of Rs 463 million for the nine months was 175 percent higher than the Rs 168 million recorded in the same period last year.

Financial Services PBT for the nine months ended 31 December 2010 at Rs 1.21 billion was 65 percent higher than the Rs 735 million recorded in the same period last year.

The Information Technology Group recorded a PBT of Rs 49 million for the nine months, compared to the loss of Rs 31 million in the corresponding period in the previous year, he said.

Others comprising of Plantation Services, John Keells Capital and the Corporate Centre recorded a PBT of Rs 2.17 billion for the nine month period, which is 334 per cent higher than the Rs 500 million PBT recorded in the same period last year. The gain on the sale of shares of John Keells Hotels PLC (KHL) and Asian Hotels and Properties PLC (AHPL) during the second quarter, contributed towards this growth for the nine months.