JKH records strong performance in Q1 2025/26; EBITDA of Rs.12.97 billion

EBITDA includes interest income and the share of results of equity accounted investees which is based on the share of profit after tax but excludes all impacts from foreign currency exchange gains and losses (other than for equity accounted associates), to demonstrate the underlying cash operational performance of businesses. EBITDA (Rs.’000)

Summarised below are the key operational and financial highlights of our performance during the quarter under review:

 Group revenue at Rs.114.15 billion for the period under review is an increase of 64% over the Rs.69.66 billion recorded in the first quarter of the previous financial year.

 Group EBITDA at Rs.12.97 billion in the first quarter of the financial year 2025/26 is an increase of 69% over the EBITDA of Rs.7.70 billion recorded in the corresponding period of the previous financial year.

 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.

 The Group marked the first full quarter of commercial operations at the West Container Terminal (WCT-1) at the Port of Colombo. 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 profit after tax as the business is treated as an equity accounted investee.

 The remaining components of the Group’s flagship integrated resort, City of Dreams Sri Lanka, are scheduled to launch on August 2, 2025, 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.

 John Keells CG Auto, 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 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 (Private) Limited.

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

 Excluding the Cinnamon Life hotel, the carbon footprint and water withdrawal per million rupees of revenue decreased by 8.3% and 9.5% respectively.