JKH records strong growth in EBITDA to Rs.13.74 billion in Q3 2023/24

Summarised below are the key operational and financial highlights of our performance during the quarter under review:

During the quarter under review, the Group reported a strong performance with all industry groups recording a growth in profits.

Group earnings before interest expense, tax, depreciation and amortisation (EBITDA) at Rs.13.74 billion in the third quarter of the financial year 2023/24 is a 32% increase against the Group EBITDA of Rs.10.41 billion recorded in the previous financial year, particularly in the Consumer Foods and Insurance businesses.

Group profit before tax (PBT) at Rs.5.49 billion in the quarter under review is an increase of 88% against the PBT of Rs.2.91 billion recorded in the third quarter of 2022/23. Group PBT recorded an increase due to the increase in EBITDA together with the gradual easing of interest rates and normalised working capital requirements, particularly in the Consumer Foods and Supermarket businesses.

Krishan Balendra

The groundwork on the West Container Terminal (WCT-1) at the Port of Colombo is progressing well, with all construction work relating to the first phase of the project (800 meters of quay length) being awarded, including the commissioning of the first batch of operating equipment. The U.S. International Development Finance Corporation (DFC) announced, in November 2023, that it has committed to finance the development of the WCT-1 project through a long-term loan facility of USD 553 million.

Further to the entering of the Memorandum of Understanding (MOU) with the selected international gaming operator, a significant amount of advanced design work, engineering and other construction and planning related aspects have been completed. The significant groundwork completed by both parties will enable, and pave the way, for a timely and rapid completion of the fit-out of the gaming space, once commenced. The parties are now working on the final stages of establishing the corporate and administrative framework which will enable commencement of fit-out at the earliest.