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Contact for Media
Mr. Yukthi Gunasekera
Corporate Communications
John Keells Holdings PLC
130 Glennie Street
Colombo 2
Sri Lanka. |
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| Interim Results of John Keells Holdings PLC for the third quarter ended 31 December 2009
- 25/01/2010 |
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Profit Before Tax (PBT) of Rs. 1.50 billion for the third quarter reflects an increase of 64 per cent compared to the Rs. 918 million in the corresponding period in the previous year, while for the nine months ended 31 December 2009, PBT of Rs. 3.37 billion reflects a decline of 14 per cent compared to the Rs. 3.93 billion in the same period last year.
The profits attributable to Equity Holders for the third quarter, ended 31 December 2009, of Rs. 1.14 billion, reflects an increase of 49 per cent compared to the corresponding period in the previous year. The Rs. 2.36 billion recorded in the first nine months is a decrease of 9 per cent compared to the same period last year.
The revenue for the third quarter and nine months ended 31 December 2009, were Rs. 12.75 billion and Rs. 34.06 billion respectively, these being increases of 37 per cent and 9 per cent compared to Rs. 9.31 billion and Rs. 31.12 billion respectively over the corresponding periods in the previous year.
At a Company level, the net profits for the third quarter, ended 31 December 2009 was Rs. 863 million being a
21 per cent decrease compared to the Rs. 1.09 billion in the corresponding period of the previous year. The net
profits of Rs. 2.83 billion for the first nine months was a decrease of 29 per cent compared to Rs. 3.96 billion in the corresponding period of the previous year, which included the capital profit of Rs. 1.21 billion on the sale of the investment in AMW.
Transportation PBT for the third quarter increased by 46 per cent to Rs. 506 million compared to the same period
last year [2008/09 Q3: Rs. 346 million]. The PBT of Rs. 1.66 billion for the first nine months of 2009/10 was a
decrease of 8 per cent compared to the Rs. 1.81 billion recorded in the same period last year. South Asia Gateway Terminals continued to perform well.
Leisure saw a significant improvement in the third quarter compared to the corresponding period of the previous year. The third quarter PBT increased by 174 percent to Rs. 333 million [2008/09 Q3: Rs. 122 million]. This improvement in performance was mainly from the Sri Lankan City hotels and Resort hotels. The PBT for the first nine months of the financial year was Rs. 159 million compared to a loss of Rs. 459 million recorded in the same period last year.
During the quarter we acquired 4 acres of land next to the former Hotel Bayroo which gives us a contiguous block of 10 acres on the prime Beruwela beach front on which we plan to construct a 190 room hotel. The South Wing of the Cinnamon Grand Hotel, comprising of 254 rooms, will be re-furbished during the next few months.
In view of the substantial plans for expansion John Keells Hotels announced a rights issue of 1:3 at Rs. 10/- per share to raise approximately Rs. 3.64 billion.
Property had a decrease of 22 per cent in PBT to Rs. 69 million compared to the corresponding period last year
[2008/09 Q3: Rs. 88 million]. The PBT of Rs.174 million recorded for the first nine months of 2009/10 is a 54 percent decrease compared to the Rs. 376 million recorded in the same period last year. The better performance in the comparative periods of last year was due to the recognition of revenue from the completion of The Monarch. There has been a significant increase in interest for apartments in recent months and we expect that this will offer opportunities for further projects.
Consumer Foods and Retail PBT for the quarter showed a decrease of 23 per cent to Rs. 77 million compared to the third quarter last year [2008/09 Q3: Rs. 99.8 million]. The PBT of Rs. 168 million recorded for the first nine months was 4 per cent lower than the Rs. 174 million recorded in the same period last year. The Soft drinks and ice cream businesses continued to perform well during the third quarter and the past nine months while the retail 2 John Keells Holdings PLC - Interim Report business saw an improvement in the third quarter. However, the performance of the processed meats business in India was below expectations, thereby contributing to this lower result.
Financial Services PBT of Rs. 353 million for the third quarter is a 159 per cent increase compared to the same period last year [2008/09 Q3: Rs. 136 million]. The PBT of Rs. 735 million for the nine months ended 31 December 2009 was 80 per cent higher than the Rs. 409 million recorded in the same period last year. John Keells Stock Brokers, Union Assurance and the banking associate of the financial services group, Nations Trust Bank all contributed towards this improvement.
Information Technology continued to see an improved performance by the BPO segment. The Information
Technology Group recorded a PBT of Rs. 4 million for the third quarter [2008/09 Q3: Loss Rs. 27 million]. For the first nine months of the financial year, IT group recorded a loss of Rs. 31 million compared to the loss of Rs. 45 million in the same period last year.
Others comprising Plantation Services, Strategic Investments and the Corporate Centre recorded an increase in PBT for the third quarter of 5 per cent to Rs. 161 million [2008/09 Q3: Rs. 154 million]. The PBT of Rs. 500 million for the first nine months was a 70 per cent decrease compared to the Rs. 1.66 billion recorded for the same period last year. The figures in the nine months results of 2008/09 included the capital gains from the AMW divestment. The plantations sector performed exceptionally well in the third quarter and the first nine months of 2009/10 compared to the corresponding periods in the previous year. During the quarter we acquired 24.6 per cent of Central Hospital (Private) Limited, a state of the art hospital, at a cost of Rs. 900 million. The operations are due to commence in March this year.
1589 applicants were accepted for the 2009/10 John Keells English Language Scholarship Programme and classes commenced in October and November at 11 centers island wide including the North and the East. A project to develop soft skills in graduates from the Moratuwa University will commence in February 2010. The ongoing programme for the development of Neighbourhood Schools continued with the upgrading of the computer room at T B Jayah Maha Vidyalaya during the quarter. 52 persons were selected for surgery and 111 were provided with reading glasses at an Eye Camp in Tawalatenna, Kotmale and 200 operations, which include 75 for the North and East, have been allocated for the Lions International for 2009/10. AIDS Day 2009 was commemorated in the form of awareness sessions held in all of the four Colombo locations and the adoption of a workplace policy on HIV/AIDS in the Leisure Group. The Group also assisted in the programme to rehabilitate former LTTE child combatants and donated furniture and fittings for the welfare of disabled soldiers. The Sustainability Development Programme “Go Beyond Business” made good progress during the quarter. |
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