John Keells Holdings Sept quarter net profit surges 213-pct to Rs5.2bn

ECONOMYNEXT — Sri Lanka conglomerate John Keells Holdings PLC (JKH) recorded a net profit of Rs. 5.17 billion for the quarter ended September 30, surging 213 percent from Rs. 1.65 billion in the same quarter last year, interim accounts showed.

The group posted basic earnings per share of Rs. 0.29 for the September quarter, up from Rs. 0.09 a year earlier.

Quarterly revenue contracted marginally by 2 percent to Rs. 142.1 billion from Rs. 144.8 billion.

Top-line moderation was primarily driven by normalized vehicle sales at its New Energy Vehicle venture, John Keells CG Auto (JKCG).

JKCG had enjoyed an exceptionally high base of pent-up demand following the resumption of vehicle imports in 2025, alongside a temporary surcharge on motor vehicle duties and tightened vehicle financing limits introduced in May 2026.

Retail served as the primary top-line engine, bringing in Rs. 74.3 billion or over half of group turnover, anchored by 13 percent same-store sales growth across Keells supermarkets.

Transportation also helped the profit growth with the sector’s revenue jumped 89.8 percent to Rs. 25.9 billion as Lanka Marine Services expanded marine bunker volumes by 31 percent amid Middle Eastern shipping diversions.

Consumer Foods added Rs. 13.7 billion in revenue on strong beverage and confectionery volumes, while property revenue rose over 145 percent to Rs. 4.7 billion on apartment and office floor handovers at Cinnamon Life and TRI-ZEN. Together, retail and transportation accounted for over 69 percent of total group collections.

Cost of sales decreased 2.2 percent to Rs. 115.8 billion, leaving gross profit virtually unchanged at Rs. 26.2 billion.

Results from operating activities dropped 32.0 percent to Rs. 7.2 billion as administrative expenses rose 16.1 percent to Rs. 12.7 billion rupees.

Other operating expenses rose 36.8 percent to Rs. 2.93 billion, reflecting network expansion, store additions, and broader inflationary and energy cost pressures.

However, finance costs declined 17.5 percent to Rs. 5.1 billion, aided by loan refinancing and de-leveraging at City of Dreams Sri Lanka.

Group results recorded a net exchange gain of Rs. 361.8 million rupees (compared to an exchange loss of Rs. 404.8 million rupees previously), supported by Sri Lankan rupee appreciation on foreign currency loan facilities.

Share of results from equity-accounted investers surged 84.9 percent to Rs. 6 billion, bolstered by Nations Trust Bank — which recognized a one-off tax credit from onboarding HSBC Sri Lanka’s retail banking portfolio — and rapid volume scale at the Colombo West International Terminal (CWIT).

Transportation EBITDA jumped 153.1 percent to Rs. 4.89 billion on 31 percent volume expansion and stronger bunker margins at Lanka Marine Services.

Property EBITDA climbed over five fold to Rs. 1.11 billion from revenue recognition at Cinnamon Life and TRI-ZEN.

Leisure showed narrowing pre-tax losses at City of Dreams Sri Lanka, though Maldivian resorts and city hotels felt the pinch of higher fuel costs and Middle Eastern air travel disruptions.

Income tax expense fell 40.8 percent to Rs. 2.13 billion, leaving group profit for the period at Rs. 5.82 billion, up 38.6 percent.

Total assets stood at Rs. 943.4 billion as of September 30, with net asset value per share at Rs. 23.60.

The board declared a first interim dividend of Rs. 0.10 per share payable by December 2, 2026.

John Keells Holdings’ shares closed at 18.80 rupees at the end of September. The share is currently trading around 17.70–17.90 rupees. (Colombo/Nov03/2026)