Listed John Keells Holdings (JKH) saw group revenue decline 8% from a year earlier to Rs127.7 billion in the year to end March 2021, amidst the devastating global coronavirus pandemic. The group reported Rs15.6 billion in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), down 23% from a year earlier. Excluding its leisure segment devastated by the Covid-19 pandemic, however, group EBITDA is a 7% increase from the previous year to Rs19.2 billion.
Growth in a difficult year
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of John Keells Holdings’ business segments (in Rs.Bn).
JKH has been on an investment-heavy cycle over the last couple of years, paving the way for transformative growth into the future, said JKH Group Chairman Krishan Balendra in a note to shareholders in the 2020/21 annual report published in May.
“Despite the unprecedented events over the last two years, which significantly impacted the performance of our portfolio, these investments have continued steadfastly, demonstrating the group’s resilience in investing,” he said.
JKH has invested in upgrading its hotels and resorts portfolio, doubling its Keells supermarket chain to over 120 outlets, enhancing capacity across its businesses in frozen confectionery and insurance, and developing its property bank. “The most significant of our investments, ‘Cinnamon Life’, is nearing completion with the revenue and profit recognition from the sale of the residential and office units commencing from the first quarter of 2021/22 onwards,” Balendra said.
“Despite the challenges of the current environment, we have laid a solid platform for growth, and JKH is now poised to benefit from the investments in building capacity, capability, and process efficiency as these come to fruition in the ensuing years,” Balendra said. The group’s next big project is developing the deepwater West Container Terminal in Colombo Port, a joint venture with the Adani Group, India.