JKH Group ups first half profits

The JKH Group has posted revenues of Rs 17.44 billion and Rs 33.13 billion in the second quarter and the first half of 2011/2012 were 25 percent and 23 percent above the Rs 13.97 billion and Rs 26.89 billion recorded in the corresponding periods in the previous year, Chairman Susantha Ratnayake said in his report.

Group gross profits of Rs 3.73 billion and Rs 6.95 billion in the second quarter and the first half of 2011/2012 were 41 percent and 33 percent above the Rs 2.65 billion and Rs 5.23 billion recorded in the corresponding periods in the previous year.

The recurring Group profit before tax (PBT) of Rs 2.12 billion for the quarter and Rs 4.00 billion for the first six months of the financial year 2011/2012 grew by 28 percent and 26 percent respectively compared to Rs 1.66 billion and Rs 3.19 billion in the corresponding periods in the previous year, excluding the gains of Rs. 1.79 billion from the sale of stakes in Asian Hotels and Properties PLC (AHPL) and John Keells Hotels PLC (KHL).

Group PBT was Rs 2.12 billion for the quarter and Rs 4.00 billion for the first six months of the financial year 2011/2012, compared to the PBT of Rs 3.45 billion and Rs 4.98 billion in the corresponding periods in the previous year. As stated above the previous year’s figure included capital gains of Rs 1.79 billion. While the recurring profits attributable to Equity Holders grew by 38 percent for the quarter and 37 percent for the first six months, the profits attributable to Equity Holders for the quarter and first six months of the financial year 2011/2012 were Rs 1.58 billion and Rs 2.94 billion respectively as against Rs 2.93 billion and Rs 3.94 billion recorded in the corresponding periods in the previous year.

The Company PBT was Rs 479 million for the quarter and Rs 1.5 billion for the first six months of 2011/2012 compared with the PBT of Rs 2.31 billion and Rs 3.33 billion in the corresponding periods in the previous year which included the capital gains.

In the Transport sector PBT for the quarter increased by 30 percent to Rs 724 million [2010/11 Q2: Rs 556 million] mainly on the back of increased volumes in selected grades of products in the bunkering business. The cold chain project for agricultural and fisheries products in the North and East of Sri Lanka was jointly commissioned by John Keells Logistics and USAID in the latter part of September 2011.

Leisure recorded a PBT of Rs 667 million for the quarter compared to a PBT of Rs 337 million recorded in the same period last year, reflecting a growth of 98 percent. This growth is despite the continued closure of some hotels for refurbishment and upgrades in the period. The improvement in performance is primarily attributable to the better results achieved by both our city hotels, and the Maldivian resorts. The refurbishment of Cinnamon Lakeside was completed and is operating at full capacity from October 1. JKH has partnered with Sanken Lanka Limited to build and manage a 240 room business hotel in Colombo for which construction has commenced. Chaaya Tranz, Hikkaduwa which was closed from May 2010 for refurbishment at a cost of Rs 1.32 billion and Chaaya Wild, Yala which was closed from May 2011 for refurbishment at a cost of Rs 441 million reopened in November 2011.