John Keells Holdings PLC reported a net profit of Rs 5.17 billion for the September quarter, up 213 percent from Rs 1.65 billion a year earlier — even as revenue slipped and operating earnings fell by almost a third.
Earnings per share rose to Rs 0.29 from Rs 0.09, EconomyNext reported from the conglomerate’s interim accounts. Quarterly revenue contracted 2 percent to Rs 142.1 billion from Rs 144.8 billion.
Where the profit came from
The headline figure is not an operating story. Results from operating activities fell 32.0 percent to Rs 7.2 billion, as administrative expenses rose 16.1 percent to Rs 12.7 billion and other operating expenses rose 36.8 percent to Rs 2.93 billion on store additions, network expansion and energy costs. Cost of sales fell 2.2 percent to Rs 115.8 billion, leaving gross profit essentially flat at Rs 26.2 billion.
The increase came from below that line:
- Associates and joint ventures contributed Rs 6 billion, up 84.9 percent, helped by a one-off tax credit at Nations Trust Bank from onboarding HSBC Sri Lanka’s retail banking portfolio, and by rising volumes at the Colombo West International Terminal.
- Finance costs fell 17.5 percent to Rs 5.1 billion on refinancing and de-leveraging at City of Dreams Sri Lanka.
- Income tax fell 40.8 percent to Rs 2.13 billion.
- A net exchange gain of Rs 361.8 million replaced a Rs 404.8 million loss, as rupee appreciation reduced the cost of foreign currency loans.
Group profit for the period — before the share attributable to minority holders is stripped out — was Rs 5.82 billion, up a more modest 38.6 percent.
Segments
Retail was the largest contributor, with Rs 74.3 billion, over half of group turnover, on 13 percent same-store sales growth at Keells supermarkets. Transportation revenue jumped 89.8 percent to Rs 25.9 billion as Lanka Marine Services expanded marine bunker volumes by 31 percent on Middle Eastern shipping diversions; the segment’s EBITDA rose 153.1 percent to Rs 4.89 billion. Together retail and transportation accounted for more than 69 percent of group collections.
Property revenue rose over 145 percent to Rs 4.7 billion on apartment and office handovers at Cinnamon Life and TRI-ZEN, lifting segment EBITDA more than fivefold to Rs 1.11 billion. Consumer Foods added Rs 13.7 billion on beverage and confectionery volumes.
The drag was John Keells CG Auto, the group’s new-energy vehicle venture, where sales normalised against an exceptionally high base of pent-up demand following the 2025 resumption of vehicle imports — compounded by a temporary motor vehicle duty surcharge and tighter vehicle financing limits introduced in May 2026.
In leisure, pre-tax losses narrowed at City of Dreams Sri Lanka, while Maldivian resorts and city hotels felt higher fuel costs and Middle Eastern air travel disruption.
Balance sheet and dividend
Total assets stood at Rs 943.4 billion at 30 September, with net asset value per share of Rs 23.60. The board declared a first interim dividend of Rs 0.10 per share, payable by 2 December. The share closed September at Rs 18.80.
A corroboration search returned a Daily FT report on JKH’s first-quarter EBITDA — the June quarter, a different filing — rather than these September-quarter accounts. No second verified newsroom carrying this result could be confirmed, so the article is single-sourced.
