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JKH leisure business records recovery

03 Nov 2021

  • Maldivian resort occupancy higher than anticipated
  • Group EBITDA improves to Rs. 6 b
Announcing its financials for the second quarter of 2020/21, John Keells Holdings (JKH) stated that the company’s leisure sector recorded a significant turnaround in performance with the Q2 2021/22 EBITDA (earnings before interest, taxes, depreciation, and amortisation) almost at breakeven levels at a negative Rs. 46 million compared to a negative Rs. 1.19 billion in the corresponding quarter of the previous year. The group, issuing a statement, noted that the Maldivian resorts segment continued its encouraging recovery momentum from the previous quarter, where the occupancy rate at hotels was higher than anticipated during this quarter, while the forward bookings for the upcoming season indicate a recovery to pre-Covid-19 levels. The group EBITDA recorded a significant improvement to Rs. 6.41 billion during the quarter under review, which is a 93% increase against the comparative period (2020/21 Q2: Rs. 3.32 billion). “The group’s businesses, except for consumer foods and the supermarket business, recorded a strong growth in profitability compared to the second quarter of the previous year, despite the quarantine curfew which prevailed for a period of six weeks due to the third wave of Covid-19 cases which impacted business activity,” the company stated. It added that the corresponding quarter in the previous year was a relatively more “normal” quarter, with no Covid-19-related disruptions, where the country benefitted from a faster recovery momentum post the outbreak of the first wave with most of their businesses reaching pre-Covid-19 levels. The handover process of the residential apartment units at Cinnamon Life continued during the quarter, resulting in recognition of revenue and profits from sales in the project. Revenue and profit recognition in Cinnamon Life will continue throughout the financial year, as the handover of the residential apartments and commercial office spaces already sold will be completed, in addition to new sales recorded. Further to the execution of a Letter of Intent to develop and operate the West Container Terminal (WCT) in the Port of Colombo, the Build-Own-Transfer (BOT) agreement between the Sri Lanka Ports Authority (SLPA) and Colombo West International Container Terminal (Pvt.) Ltd., the project company, was executed for a lease period of 35 years.


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