JKH Sees Growth as Cinnamon Life Gains Momentum, Port Expansion Nears Completion

John Keells Holdings PLC (JKH) recorded steady growth in the third quarter of FY 2024/25, with its flagship Cinnamon Life project gaining traction and major infrastructure investments progressing as planned.

Group EBITDA reached Rs.14.28 billion, up 4% from the previous year, despite pre-opening costs for Cinnamon Life. Adjusted for one-off factors, EBITDA increased by 10% to Rs.14.89 billion.

Cinnamon Life’s 687-key hotel, restaurants, and banquet spaces commenced operations in October 2024, with all facilities now fully functional. Demand for event spaces has exceeded expectations, while interest in its residential and office towers has picked up. The gaming space and retail mall are set to open by Q3 2025.

Meanwhile, the West Container Terminal’s first phase is nearing completion, with all civil work finalized and equipment in the commissioning phase. Operations are expected to begin in February 2025.

JKH’s Supermarket business saw a 14% increase in same-store sales, supporting profitability. Beverages and Frozen Confectionery also delivered strong performance with double-digit volume growth. However, the Leisure sector faced headwinds from the stronger rupee and Cinnamon Life’s early-stage costs.

Nations Trust Bank delivered strong profit growth, supported by gains from sovereign bond disposals and asset expansion. Union Assurance maintained steady profitability, with double-digit growth in both first-year and renewal premiums.

In January 2025, HWIC Asia Fund converted its final balance of debentures, leading to the issuance of 1.08 billion new JKH shares.

Sustainability efforts remain a focus, with the Group’s carbon footprint and water withdrawal per revenue unit decreasing by 1.8% and 3.5%, respectively.

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Source From biz.adaderana
Author: Biz Editor
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