John Keells Group’s 2Q earnings before EBITDA grows by 15% | Daily News

John Keells Group’s 2Q earnings before EBITDA grows by 15%

Krishan Balendra,  JKH Chairman
Krishan Balendra, JKH Chairman

John Keells Group’s second quarter ended September 30 saw the group earnings before interest, taxes, depreciation, and amortization (EBITDA) excluding Leisure growing by 15% displaying strong recovery momentum.

The underlying performance of the Transportation, Consumer Foods, Retail and Financial Services industry groups continued its growth momentum witnessed in the latter part of the previous quarter, demonstrating a faster than anticipated recovery following the resumption of business activity in the country post the easing of lockdowns in May 2020.

Group EBITDA excluding the Leisure industry group was Rs.4.50 billion during the second quarter of the year under review, which is a 15 per cent increase against the previous year [2019/20 Q2: Rs.3.91 billion]. Given the strong recovery momentum in business activity and the generation of cash profits by the Group, a second interim dividend of Rs.0.50 per share, amounting to a pay-out of Rs.659 million, was declared to be paid on or before 7 December 7, 2020. The declaration of this dividend reflects the cash generation capability of the Group’s diverse portfolio of businesses.

The Leisure industry group continued to be impacted by the closure of the airport in Sri Lanka, although this has been mitigated, to an extent, by a resumption in domestic tourism, recovery in the banqueting, food and beverage segments and the opening of the airport in the Maldives in mid-July.

The Frozen Confectionery, Beverage and Convenience Foods businesses recorded double-digit growth in EBITDA against the corresponding period of the previous quarter, continuing the trajectory witnessed in June.

The Supermarket business continued its positive momentum with a strong rebound in sales and EBITDA, driven by the contribution from new outlets towards revenue growth and a pick-up in same store footfall post the easing of lockdown measures witnessed in the first quarter.

Pace of construction at ‘Cinnamon Life’ continued to gain traction during the quarter. Post ascertaining the impact of COVID-19 on the overall timelines of the project to manage deliverables and the re-sequencing of work, it is expected that the hand-over of the residential apartments and office tower will commence on a staggered basis from the fourth quarter of 2020/21 onwards.