Connect with us

Business

JKH pays modest Rs. 0.50 dividend despite Rs. 1.7 bn. first half loss

Published

on

John Keells Holdings PLC, the diversified conglomerate widely regarded as the strongest entity quoted on the Colombo Stock Exchange, Thursday announced a second interim dividend of 50 cents a share, on top of the first interim of one-rupee paid in November last year despite a group loss of Rs. 1.7 billion in the first half of the current financial year.

Analysts said that JKH’s strong balance sheet with a revenue reserve of nearly Rs. 65 billion had made this payment possible.

JKH Chairman Krishan Balendra said in his chairman’s review of the September quarter that the “group will follow its dividend policy which corresponds with the growth in profits, whilst ensuring that the company maintains adequate funds to ensure business continuity given the unprecedented nature of the current circumstances.”

He explained the dividend despite the negative bottom line to “the faster than anticipated recovery following the resumption of business activity in the country and the strong growth momentum witnessed across our group businesses with the exception of leisure.”

The declaration of this dividend reflects the cash generation capability of the Group’s diverse portfolio of businesses, he said.

The leisure segment of their business took the hardest blow with an EBITDA (Earnings Before Interest Tax, Depreciation and Amortization) of Rs. 2.6 billion in the first half of the current financial year.

Discussing this, he said although the Sri Lankan airport remains closed to-date for foreign arrivals, the resumption of domestic travel continued during the quarter, with all properties in the Sri Lankan Resorts segment recording an encouraging increase in month-on-month occupancy.

Despite the challenging operating environment, the City Hotels sector also exhibited a better than anticipated performance, primarily driven by the food and beverage and banqueting segments. However, the recent cluster outbreak of COVID-19 in Sri Lanka will impede this recovery should the current situation prevail, he warned.

 

Balendra summary of key operational and financial highlights of the September quarter was:

• The underlying performance of the Transportation, Consumer Foods, Retail and Financial Services industry groups continued its growth momentum witnessed in the latter part of the previous quarter, demonstrating a faster than anticipated recovery following the resumption of business activity in the country post the easing of lockdowns in May 2020.

• Group EBITDA excluding the Leisure industry group was Rs.4.50 billion during the second quarter of the year under review, which is a 15 per cent increase against the previous year [2019/20 Q2: Rs.3.91 billion].

• Given the strong recovery momentum in business activity and the generation of cash profits by the Group, a second interim dividend of Rs.0.50 per share, amounting to a payout of Rs.659 million, was declared to be paid on or before 7 December 2020. The declaration of this dividend reflects the cash generation capability of the Group’s diverse portfolio of businesses.

• The Leisure industry group continued to be impacted by the closure of the airport in Sri Lanka, although this has been mitigated, to an extent, by a resumption in domestic tourism, recovery in the banqueting, food and beverage segments and the opening of the airport in the Maldives in mid-July.

• The Frozen Confectionery, Beverage and Convenience Foods businesses recorded double-digit growth in EBITDA against the corresponding period of the previous quarter, continuing the trajectory witnessed in June.

• The Supermarket business continued its positive momentum with a strong rebound in sales and EBITDA, driven by the contribution from new outlets towards revenue growth and a pick-up in same store footfall post the easing of lockdown measures witnessed in the first quarter.

• Pace of construction at ‘Cinnamon Life’ continued to gain traction during the quarter. Post ascertaining the impact of COVID-19 on the overall timelines of the project to manage deliverables and the re-sequencing of work, it is expected that the hand-over of the residential apartments and office tower will commence on a staggered basis from the fourth quarter of 2020/21 onwards.



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

HNB Finance bags 2 CMA Reporting Awards 2025

Published

on

Prof. Ho Yew Kee presents the award, while Rajeeva Bandaranaike hands over the certificate to the HNB Finance team. Featured (right to left): Thushara Jayasekara – Chief Manager / Head of Corporate Planning & Analytics; Randula Munindradasa – Assistant Manager Planning & Analytics; Sandakelum Jayathunga – Senior Manager – Financial Reporting; Maheshika Samarakoon – Manager – Strategy Implementation & Reporting

HNB Finance PLC has been honoured with two prestigious accolades at the CMA Excellence in Integrated Reporting Awards 2025, reaffirming the company’s commitment to transparency, good governance, and integrated business performance.

At this year’s ceremony, HNB Finance PLC was awarded Second Runner Up – joint in the category of “Best Integrated Report , Finance and Leasing Sector”, and also received a Merit Award in recognition of its continued efforts to enhance reporting quality and strengthen stakeholder communication.

The CMA Excellence in Integrated Reporting Awards, organised annually by the Institute of Certified Management Accountants (CMA) of Sri Lanka, acknowledge organisations that demonstrate superior financial reporting standards aligned with global best practices. Winners are assessed on key criteria such as financial performance and strategic management, corporate governance and compliance, innovation and digital transformation, sustainability practices, and professional excellence.

Chaminda Prabhath, Managing Director/CEO of HNB Finance PLC, commented on the recognition, “These awards reaffirm our commitment to upholding the highest standards of integrated reporting and transparent financial disclosure. At HNB Finance, we remain focused on delivering sustainable long-term value through robust governance frameworks, prudent financial management, and continuous innovation. The acknowledgement by CMA Sri Lanka reflects the disciplined efforts of our teams across the organization and motivates us to further enhance our reporting quality, strengthen ESG integration, and reinforce our stakeholder centric approach.”

Continue Reading

Business

ComBank joins ‘Liya Shakthi’ scheme to further empower women-led enterprises

Published

on

Mithila Shyamini, Assistant General Manager – Personal Banking at Commercial Bank and Jude Fernando, Chief Executive Officer of the National Credit Guarantee Institution exchange the agreement in the presence of representatives of the two organisations

The Commercial Bank of Ceylon has reaffirmed its long-standing commitment to advancing women’s empowerment and financial inclusion, by partnering with the National Credit Guarantee Institution Limited (NCGIL) as a Participating Shareholder Institution (PSI) in the newly introduced ‘Liya Shakthi’ credit guarantee scheme, designed to support women-led enterprises across Sri Lanka.

The operational launch of the scheme was marked by the handover of the first loan registration at Commercial Bank’s Head Office recently, symbolising a key step in broadening access to finance for women entrepreneurs.

Representing Commercial Bank at the event were Mithila Shyamini, Assistant General Manager – Personal Banking, Malika De Silva, Senior Manager – Development Credit Department, and Chathura Dilshan, Executive Officer of the Department. The National Credit Guarantee Institution was represented by Jude Fernando, Chief Executive Officer, and Eranjana Chandradasa, Manager-Guarantee Administration.

‘Liya Shakthi’ is a credit guarantee product introduced by the NCGIL to facilitate greater access to financing for women-led Micro, Small, and Medium Enterprises (MSMEs) that possess viable business models and sound repayment capacity but lack adequate collateral to secure traditional bank loans. Through NCGIL’s credit guarantee mechanism, Commercial Bank will be able to extend credit to a wider segment of women entrepreneurs, furthering its mission to drive inclusive economic growth.

Continue Reading

Business

Prima Group Sri Lanka supports national flood relief efforts with over Rs. 300 Mn in dry rations

Published

on

Defence Secretary Air Vice Marshal (Retd) Sampath Thuyacontha receiving the donation from Sajith Gunaratne - General Manager of Ceylon Agro Industries Limited, and Sanjeeva Perera - General Manager of Ceylon Grain Elevators PLC

Prima Group Sri Lanka has pledged assistance valued at over Rs. 300 million, providing essential Prima food products to support communities affected by the recent floods across the island. This relief initiative is being coordinated through the Ministry of Defence to ensure the timely and effective distribution of aid to impacted families.

As part of this commitment, Prima Group Sri Lanka donated a significant stock of Prima dry rations to the Government of Sri Lanka on 30 November. The consignment will be distributed across multiple severely impacted districts. These supplies will support families facing disruptions to daily life, ensuring they receive assistance as recovery efforts continue.

The handover took place at the Ministry, where the donation was received by the Secretary of Defence, Air Vice Marshal (Retired) Sampath Thuyacontha. Representing Prima Group Sri Lanka, Sajith Gunaratne – General Manager of Ceylon Agro Industries Limited, and Sanjeeva Perera – General Manager of Ceylon Grain Elevators PLC, officially presented the donation.

Prima Group has been standing with the people of Sri Lanka for over 40 years, and this donation reflects its broader commitment to the nation during challenging times. As relief operations continue across the island, the company remains focused on helping families rebuild their lives and supporting the ongoing recovery process in collaboration with the Government Authorities.

Continue Reading

Trending