John Keells Holdings PLC (JKH)posted strong performance in Q3 despite a challenging domestic and global environment, the company stated in a media communiqué last week.
The Group’s earnings before interest expense, tax, depreciation and amortisation (EBITDA) recorded an increase of 126 percent to Rs. 9.53 billion during the quarter under review against the comparative period (2020/21) Q3: Rs. 4.21 billion.
The Group’s businesses recorded strong growth in profitability compared to the third quarter of the previous year on the back of a fast recovery momentum with most of the businesses reaching pre Covid-19 levels post the easing of restrictions.
The Leisure industry group, in particular, recorded a significant turnaround in performance with the Q3 2021/22 EBITDA at Rs.1.23 billion compared to a negative Rs.1.01 billion in the corresponding quarter of the previous year. This turnaround has continued in January 2022 and a strong recovery is expected in the coming months.
The Maldivian Resorts segment continued its encouraging recovery momentum where the occupancy at our hotels were at pre-pandemic levels during the quarter while the Colombo Hotels and Sri Lankan Resorts segments recorded a positive EBITDA in December 2021 on the back of easing of restrictions from October 2021 onwards.
The Consumer Foods industry group continued its strong recovery momentum with all segments recording strong double-digit growth in volumes during the quarter, with volumes of the beverages and frozen confectionery businesses reaching pre-pandemic levels. The Retail industry group recorded an encouraging performance with same store sales growth driving profitability in the Supermarket business, whilst the mobile phones business recorded a strong increase in volumes and profitability.
The residential and commercial components of the ‘Cinnamon Life’ project are now completed, with the second residential apartment tower ‘The Residence at Cinnamon Life’, ready for customer handover from February 2022 onwards. The USD 395 million loan at ‘Cinnamon Life’, which was due for repayment by July 2022, was refinanced in December 2021 through a syndicated facility during the quarter under review.
The new facility comprises a USD 225 million long-term loan component and a USD 100 million bridging facility for a six-month period to align with the maturity date of July 2022 under the original facility.