John Keells Holdings PLC (JKH) has announced impressive financial results for the fiscal year 2025/26, showcasing a significant 75% increase in Group EBITDA, reaching Rs.80.01 billion. This growth is attributed to strategic investments made in recent years and the ongoing success of the Group’s established sectors.
The Group’s recurring EBITDA saw a rise of 71%, amounting to Rs.78.05 billion, compared to Rs.45.69 billion from the previous year. Key contributors to this increase were the Retail, Transportation, and Leisure sectors. Furthermore, recurring profit before tax surged by 143% to Rs.35.72 billion, while the profit attributable to equity holders of the parent company rose by 155% to Rs.13.24 billion.
This fiscal year also marked the conclusion of the most significant investment phase in the Group’s history, with the operational launch of critical projects indicating a transition in the capital cycle from development to operational contributions. Overall funding needs have notably decreased as anticipated, with the net debt to EBITDA ratio standing at about 2 times, and net debt to equity at approximately 31%.
City of Dreams Sri Lanka achieved positive EBITDA throughout the year following the completion and launch of its remaining integrated resort components. Meanwhile, Cinnamon Life’s conference and event facilities garnered attention from both local and international event organizers, and there was a noticeable recovery in casino operations starting in the fourth quarter.
The Colombo West International Terminal, associated with WCT-1, experienced robust throughput growth, supported by an enhanced volume mix. The business exceeded profit after tax expectations despite accounting for depreciation from phase 1 and has fully utilized its phase 1 capacity based on its recent monthly performance.
John Keells CG Auto had an outstanding year, aided by pent-up demand and the strategic positioning of the BYD vehicle range.
The Supermarket division reported around 14% growth in same-store sales, primarily driven by a 14.3% increase in customer visits. The Beverages and Confectionery sectors also experienced strong volume growth, with Beverages benefiting from higher margins, while Confectionery margins faced pressure due to increased raw material costs and expenses associated with new product launches.
The Leisure sector saw significant EBITDA growth, with all areas contributing to enhanced profitability, buoyed by improved occupancy rates.
In March 2026, John Keells Properties introduced Vauxhall DSTRCT, a residential project in Colombo 02 comprising 749 units.
Nations Trust Bank (NTB) reported better profitability, supported by strong loan growth and a decrease in impairments. NTB completed the acquisition of HSBC Sri Lanka’s retail banking operations effective May 1, 2026, with active operations commencing shortly thereafter. Union Assurance also achieved notable double-digit growth in gross written premiums.
The Group’s return on capital employed (ROCE) improved to 9.0% in FY2025/26, up from 5.1% the previous year. Excluding the newly operational integrated resort, the remaining portfolio achieved a ROCE of 17%, highlighting the solid return profile of the Group’s established business lines.
The results for the year underscored the resilience of the Group’s established operations and the increasing impact of recent investments, positioning JKH for future growth opportunities.
John Keells Holdings PLC stands as the largest conglomerate listed on the Colombo Stock Exchange by market capitalization, operating over 80 companies across seven diverse industry sectors. With a legacy spanning over 155 years, the John Keells Group employs more than 18,000 individuals and has been recognized as Sri Lanka’s ‘Most Respected Entity’ for two decades by LMD magazine. The company topped the ‘Transparency in Corporate Reporting Assessment’ by Transparency International Sri Lanka for four consecutive years. As a full member of the World Economic Forum and a participant in the UN Global Compact, JKH is committed to its corporate social responsibility vision of “Empowering the Nation for Tomorrow,” facilitated through the John Keells Foundation and the ‘Plasticcycle’ initiative aimed at significantly reducing plastic pollution in Sri Lanka.
Source: Financial Chronicle Biz English | Sri Lanka Business News.
