JKH defies critics with blowout 2Q results

• EBITDA soars 127%, profits rise 21% on synchronised performance at all units 
• Performance largely led by retail segment, which houses its expansive supermarket business and more recently electric vehicle business
• Says it expects even better performance in second half of financial year, after fully operationalising key investments made in first half
• Reported earnings of Rs.1.65bn for quarter, a 21% increase when compared with Rs.1.37bn for same period last year

Krishan Balendra

In a striking rebuke to its critics, top blue chip John Keells Holdings PLC (JKH) reported a breakout performance for the three months ended September 2025, posting an 88 percent growth in revenue, a 127 percent surge in operating results and a 21 percent rise in profits attributable to the equity holders. 

The gains were driven by contributions from new investments and robust performance across its portfolio.

In what could be interpreted as forward guidance, the company said it expects even a better performance in the second half of the financial year, after fully operationalising the key investments made in the first half.

“Group earnings before interest, tax, depreciation and amortisation (EBITDA) at Rs.18.36 billion in the second quarter of the financial year 2025/26 is a significant increase of 127 percent against group EBITDA of Rs.8.09 billion recorded in the corresponding period of the previous financial year,” JKH Chairperson Krishan Balendra said in an earnings release.

JKH and its current management came under fire a few weeks ago after some parties published a critical piece on the company’s performance in recent periods.

The company reported a loss of Rs.803.69 million for the June quarter. The second-quarter performance is a blunt response to those critics who took aim at the country’s largest corporate entity.

JKH shares closed at Rs.21.40 on Tuesday before the earnings were released.

The group’s performance was largely led by its retail segment, which houses its expansive supermarket business and more recently, the electric vehicle unit. John Keells Holdings holds the authorised distributorship for China’s BYD vehicles.

This segment reported an EBITDA of Rs.10.11 billion for the quarter, up 323 percent from a year ago. Same-store sales grew by a solid 14 percent during the quarter in its supermarkets, while the company sold 3,700 new vehicles, bringing cumulative sales to over 6,000. The company said it has further 3,800 vehicles to be delivered in the coming months.

Meanwhile, its flagship City of Dreams development, a landmark project that has opened its luxury-standard casino, the ultra-high-end Nuwa hotel and the first phase of a premium lifestyle-focused shopping mall, neared EBITDA break-even during the quarter, supported by higher monthly occupancy and growth in conference and banquet business.

The project reported a negative EBITDA of Rs.64.47 million for the quarter, compared with Rs.1.18 billion a year ago.

The overall leisure sector also performed well, with total EBITDA for the segment reaching Rs.1.43 billion for the quarter, compared with a negative EBITDA of Rs.136.00 million a year earlier.

“This positive momentum is expected to accelerate, supported by strong bookings for accommodation and international conferences and events,” Balendra said.

“Cinnamon Life’s unique conference and event venues are attracting significant interest for both local and foreign events. Some international events are now being attracted to Colombo specifically due to Cinnamon Life’s unparalleled capacity and world-class facilities that set it apart in the country and region,” he added.

He further noted that since its commencement in August 2025, casino operations at City of Dreams Sri Lanka have been steadily ramping up with growing footfall.

Meanwhile, the group’s financial services business, largely represented by its licensed commercial bank Nations Trust Bank PLC and its life insurance subsidiary Union Assurance PLC, performed strongly, supported by solid loan growth and double-digit growth in premium income.

Against this backdrop, the company reported earnings of 9 cents a share or Rs.1.65 billion for the quarter, compared with 8 cents a share or Rs.1.37 billion in the same period last year, translating into a 21 percent increase.