John Keells Holdings PLC reported a strong start to the 2025/26 financial year, with group earnings before interest, tax, depreciation and amortisation (EBITDA) surging 69% to Rs. 12.97 billion in the first quarter.
This surge was driven by broad-based growth across retail, new energy vehicles and early contributions from port operations.
Revenue for the three months ended June climbed 64% to Rs.114.15 billion from Rs. 69.66 billion a year earlier, the company said.
The sharp rise in top-line and EBITDA was largely powered by the retail sector, where the supermarket business delivered a 13% same-store sales increase on the back of a 17% rise in footfall, and by John Keells CG Auto, which has built up a strong order book in its new energy vehicle segment, handing over a material number of vehicles to customers during the quarter.
The period marked the first full quarter of commercial operations at the group’s West Container Terminal (WCT-1) at the Port of Colombo. The ramp-up in volumes has been ahead of expectations, with operational productivity improving steadily.
However, because WCT-1 is treated as an equity-accounted investee, the group recognises only its share of profit-after-tax, resulting in a drag on EBITDA at this early stage.
The group is preparing for the 2 August launch of the remaining components of its flagship integrated resort, City of Dreams Sri Lanka, which will include a top-tier international casino, the ultra-luxury Nuwa hotel and a premium lifestyle-focused shopping mall.
Outside of WCT-1, the transportation business posted an 11% gain in EBITDA, led by the performance of Lanka Marine Services. In the consumer foods segment, beverages saw a 10% volume decline due to unseasonal weather across the country, while confectionery volumes rose 3%, supported by both impulse and bulk segments.
The leisure sector posted higher profitability as improved tourist arrivals lifted hotel occupancy and margins, while the property sector benefited from sales momentum at Cinnamon Life, Tri-Zen and Viman residential projects as well as real estate sales through Rajawella Holdings in Digana.
Financial services also contributed positively, with Nations Trust Bank posting stronger earnings on loan growth and lower impairments.
The group noted that, excluding the Cinnamon Life hotel, its carbon footprint and water withdrawal per million rupees of revenue fell 8.3% and 9.5% respectively.
John Keells said orders in its elective vehicle (EV) business have exceeded expectations and that momentum in its retail and logistics operations continues to position the group for sustained earnings growth in the coming quarters.