Business
“JKH records strong EBITDA of Rs.13.33 billion in Q1; Resilient performance despite macro challenges”
Summarised below are the key operational and financial highlights of our performance during the quarter under review:
• Group EBITDA recorded a significant improvement to Rs.13.33 billion during the quarter under review, which is an increase of 180 per cent against the comparative period of last year [2021/22 Q1: Rs.4.76 billion]. The first quarter of the previous year was partially disrupted on account of the lockdowns due to the pandemic.
• Despite the challenging and uncertain operating environment which was characterised by numerous supply chain disruptions, foreign exchange limitations, power disruptions and fuel shortages, the Group’s businesses recorded strong growth in profitability compared to the first quarter of the previous year on the back of a continued recovery momentum with most businesses reaching pre-pandemic levels.
• The Leisure industry group, in particular, recorded a turnaround in performance reporting an EBITDA of Rs.1.87 billion compared to the negative EBITDA of Rs.649 million in the corresponding quarter of the previous year. The strong performance of the Maldivian Resorts and Destination Management segments, and a better performance in the Colombo Hotels segment were the main contributors to the turnaround in performance.
• The Group’s Bunkering business recorded a significant increase in profitability in its core ship bunkering operations driven by higher margins on account of the steep increase in fuel oil prices and volumes, whilst the profitability of the Group’s Ports and Shipping business recorded an increase as a result of higher revenue from ancillary operations and the translation impact due to the depreciation of the Rupee.
• The Consumer Foods industry group continued its strong recovery momentum with all three segments recording strong double-digit growth in volumes off a partially pandemic affected base. Volumes continue to exceed pre-pandemic levels.
• The Supermarket business recorded a strong performance with same store sales recording encouraging growth driven by a combination of higher basket values due to high inflation and, notably, an increase in customer footfall compared to the comparative quarter which was impacted by the pandemic.
• The Property industry group recorded a decline in EBITDA as the first quarter of the previous year included revenue and profit recognition from the handover of the residential apartment units at ‘Cinnamon Life’. The recognition of revenue of all units sold as at that date at ‘Cinnamon Life’ was completed by 31 March 2022.
• The Insurance business recorded double digit growth in gross written premiums. The Banking business recorded an increase in profitability aided by an increase in net interest margins, loan growth, focused recovery efforts and cost management initiatives.
• As announced to the Colombo Stock Exchange, the Company is in the process of concluding a transaction to raise Rs.27.06 billion, subject to shareholder approval, through a private placement of LKR denominated convertible debentures to Fairfax, Canada.
• The ‘SanNap’ programme was rolled out across the Group, where sanitary napkins are provided free-of-charge to all female employees whilst a tri-lingual module on LGBTIQ+ awareness was launched on the Group’s e-learning platforms as a mandatory and annual refresher, and also as a part of the Group induction.
• In light of the current socio-economic crisis in Sri Lanka and hardships faced by people in the country, the Group initiated several relief programmes to support vulnerable communities, covering areas such as the availability of food and nutrition, the adoption of sustainable agricultural practices to improve yields and providing assistance towards mitigating the loss of educational opportunities for children.
• The Group’s carbon footprint per million rupees of revenue decreased by 38 per cent to 0.37 MT while the water withdrawal per million rupees of revenue decreased by 44 per cent to 6.71 cubic meters.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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