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Friday, July 29, 2011

JKH net profits up 35 percent

Jhon Keells Holdings net profit for the second quarter increased 35 percent to Rs. 1.37 billion from Rs. 1.01 billion a year ago.

Group profit before tax (PBT) of Rs. 1.88 billion for the quarter is an increase of 23 per cent over the PBT of Rs. 1.53 billion in the corresponding period in the previous year.

The revenue at Rs. 15.69 billion in the first quarter was 21 per cent above the Rs. 12.92 billion recorded in the corresponding period in the previous year. The Company PBT of Rs. 1.02 billion for the quarter was marginally above the Rs. 1.01 billion recorded in the corresponding period in the previous year.

Transportation PBT of Rs. 742 million was a decrease of 7 per cent over the first three months of 2010/11 Q1: Rs. 802 million], mainly due to the translation impact arising from a stronger Sri Lankan Rupee.

The Leisure industry group recorded a significant improvement in the first quarter with a PBT of Rs. 374 million [2010/11 Q1: loss of Rs. 14 million]. The City Hotels – Cinnamon Grand Colombo and Cinnamon Lakeside Colombo saw strong growth and the Maldivian resort hotel sector also saw an improved performance compared to the loss it had made in the first quarter of last year.

Property recorded a PBT of Rs. 85 million for the quarter, a decrease of 41 per cent over the corresponding period last year [2010/11 Q1: Rs. 145 million]. The cyclical nature of the revenue recognition of the property group’s projects is the main reason for the variance from the corresponding period in the previous year. The Emperor project is scheduled for completion in September this year. The construction of the Rs. 7.8 billion apartment block, "OnThree20", commenced in April this year, with over 65 per cent of the apartments sold off plan

Consumer Foods and Retail PBT of Rs. 207 million for the quarter was an increase of 22 per cent over the first quarter last year [2010/11 Q1: Rs. 169 million], primarily due to volume increases in the ice creams and soft drinks businesses.

Financial Services PBT of Rs. 422 million for the quarter is a 12 per cent increase over the same period last year [2010/11 Q1: Rs. 377 million], mainly as a result of a significantly better performance by the banking associate Nations Trust Bank. The insurance business, Union Assurance is also seeing strong growth, with life business premiums growing by 34 percent in Q1. The investment banking arm, John Keells Capital, accounted under ‘other’, executed a number of mandates during the quarter.

The Information Technology Group recorded a loss of Rs. 20 million for the three months, compared to the performance over the same period last year [2010/11 Q1: Rs. 0.8 million] due to costs associated with the transition of the BPO business to a new facility.

Other comprising of Plantation Services, John Keells Capital and the Corporate Centre recorded a PBT of Rs. 74 million for the three month period, an increase of 43 percent when compared to the corresponding period last year [2010/11 Q4: Rs. 52 million].

source - www.island.lk