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JKH leisure sector records recovery in Q3

27 Jan 2022

  • Maldivian resorts reach pre-pandemic occupancy rates
  • Sri Lankan resorts record positive EBITDA in December 
    John Keells Holdings PLC (JKH) saw its profit for 3Q 2021/22 for its leisure industry recording a significant turnaround in performance with the 3Q 2021/22 earnings before interest, taxes, depreciation, and amortisation (EBITDA) at Rs. 1.2 billion compared to a negative Rs.1.0 billion in 3Q 2020/21. The turnaround in performance was on account of the strong performance of the Maldivian resorts and the encouraging recovery momentum witnessed in the Sri Lankan leisure businesses as a result of the relaxation of travel restrictions and the reopening of the airport.  JKH further disclosed that its Maldivian resorts segment occupancy has reached pre-pandemic levels 3Q 2021/22 on the back of recoveries in arrivals and that the momentum of forward bookings for the next few months in the Maldives, demonstrates a significant “pent-up” demand for leisure travel.  Overall profits surged by 562% year-on-year (YoY) reaching Rs. 5.2 billion from Rs. 0.8 billion in 3Q 2020/21 on the back of a fast recovery momentum with most of the businesses reaching pre-Covid-19 levels post the easing of restrictions. Consequently, earnings per share for 3Q 2021/22 increased to Rs. 3.72 from Rs. 0.75 in 3Q 2020/21. The consumer foods industry continued its strong recovery momentum with its EBITDA increased by 66% to Rs. 1 billion during 3Q 2021/22 from Rs. 0.6 billion in 3Q 2020/21.  Similarly, the retail industry group also recorded an encouraging performance during 3Q 2021/22 with its EBITDA increasing by 34% YoY during 3Q 2021/22 to Rs. 2.3 billion from Rs. 1.7 billion in 3Q 2020/21.  JKH further announced that Colombo West International Container Terminal (Pvt.) Ltd. (CWIT), the project company for the development of the West Container Terminal-1 (WCT-1) in the Port of Colombo, is in the final stages of fulfilling the conditions present in the build, operate, and transfer (BOT) agreement, and the handover of the site for the commencement of construction is expected to take place in the ensuing quarter.  JKH further announced that the residential and commercial components of the “Cinnamon Life” project have been completed and the second residential apartment tower “The Residence at Cinnamon Life” is expected to be ready for customer handover by February 2022.


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