John Keells Holdings (JKH) has reported a 39% increase in group profit after tax to Rs. 5.82 billion for the second quarter of the 2026/27 financial year, compared to Rs. 4.20 billion in the corresponding period last year.
According to the company’s latest financial results, profit before tax increased by 2% to Rs. 7.95 billion, while profit attributable to shareholders of the parent company surged by 213% to Rs. 5.17 billion from Rs. 1.65 billion a year earlier.
Group earnings before interest, tax, depreciation and amortisation (EBITDA) remained broadly unchanged at Rs. 18.30 billion, compared to Rs. 18.36 billion in the previous year.
However, cumulative EBITDA for the first six months of the financial year increased by 11% to Rs. 34.65 billion.
- Transportation sector records strong growth
JKH’s transportation business recorded a 153% increase in quarterly EBITDA to Rs. 4.89 billion, supported by strong performance at Lanka Marine Services and the Colombo West International Terminal (CWIT).
Lanka Marine Services reported a 31% increase in bunkering volumes, while CWIT handled 502,351 twenty-foot equivalent units (TEUs) during the quarter.
The terminal also became the fastest at the Port of Colombo to handle two million TEUs, achieving the milestone within 18 months of commencing operations.
The company said Phase 2 operations have commenced, with full operations expected by December 2026.
- Vehicle business sees lower contribution
JKH said its retail sector EBITDA declined by 53% to Rs. 4.75 billion, mainly due to a lower contribution from John Keells CG Auto compared to the exceptionally strong performance recorded last year following the resumption of vehicle imports.
Despite the moderation, John Keells CG Auto handed over more than 2,400 vehicles during the quarter.
Meanwhile, the supermarket business recorded 13% same-store sales growth, supported by increased customer spending and higher footfall.
- City of Dreams Sri Lanka performance improves
The company reported improving operating momentum at City of Dreams Sri Lanka, with higher hotel occupancy and average room rates contributing to stronger earnings.
Casino operations also demonstrated improved performance as the business continued to expand.
City of Dreams Sri Lanka recorded quarterly EBITDA of approximately Rs. 340 million, compared to a loss of Rs. 64 million in the corresponding quarter last year.
However, the overall leisure sector recorded a 10% decline in EBITDA, reflecting weaker contributions from Colombo hotels and Maldivian resorts, partly due to travel disruptions linked to the Middle East conflict.
- Financial services and property businesses grow
The financial services sector recorded a 44% increase in EBITDA to Rs. 3.62 billion, supported by higher contributions from Nations Trust Bank and Union Assurance.
The property sector also recorded significant growth, with EBITDA increasing by 468% to Rs. 1.11 billion, driven by profit recognition from residential and commercial unit sales at Cinnamon Life and residential sales at TRI-ZEN.
Meanwhile, the consumer foods sector reported 17% EBITDA growth, supported by a 10% increase in carbonated soft drink volumes and 7% growth in confectionery volumes.
JKH also announced a first interim dividend of Rs. 0.10 per share, payable on or before December 2, 2026. (Newswire)