JKH pre-tax profit down 5% in 2Q

Premier blue chip John Keells Holdings (JKH) yesterday reported a decline in earnings for the second quarter though bottom line was boosted by an extraordinary benefit.

Releasing interim results, JKH said Group profit before tax (PBT) at Rs. 4.69 billion in the second quarter of the financial year 2018/19 is a decrease of 5% over the Rs. 4.95 billion recorded in the previous financial year. The cumulative PBT for the first half of the financial year 2018/19 at Rs. 7.60 billion is a decrease of 16% over the PBT of Rs. 9.04 billion recorded in the same period of the previous financial year.

The Group revenue at Rs. 32.57 billion for the period under review is an increase of 10% over the Rs. 29.62 billion recorded in the previous financial year. The cumulative revenue for the first half of the financial year 2018/19 at Rs. 62.74 billion is an increase of 11% over the revenue of Rs. 56.45 billion recorded in the corresponding period of the previous financial year.

The profit attributable to equity holders in the second half at Rs. 5.10 billion is an increase of 37% over the corresponding period of the previous financial year, whilst the first six months performance at Rs. 7.28 billion is an increase of 11% over the previous year. The profit attributable to equity holders includes a recognition of a deferred tax asset at Union Assurance PLC.

The Company PBT for the second quarter of 2018/19 at Rs. 2.61 billion is an increase of 20% over the Rs. 2.18 billion recorded in the corresponding period of 2017/18. The Company PBT for the first six months of the financial year 2018/19 at Rs. 5.05 billion is a decrease of 9% over the previous financial year.

See JKH Chairman Susantha Ratnayake’s review of 2Q performance on Page 2