JKH records strong Q4 2023/24 with recurring EBITDA growth of 20% to Rs.13.97 billion

Summarised below are some of the key operational and financial highlights for the fourth quarter ended 31 March 2024. The commentary on the annual performance is available on the JKH Annual Report 2023/24:

• During the fourth quarter, the Group reported a strong performance across most businesses, with Consumer Foods, Transportation and Leisure, in particular, recording significant growth.

The performance seen in most of the businesses is a reflection of the improving macroeconomic conditions in the country and is a continuation of the growth momentum witnessed in the third quarter of 2023/24.

• Recurring Group EBITDA in the fourth quarter of 2023/24 recorded a growth of 20% to Rs.13.97 billion [Q4 2022/23: Rs.11.65 billion]. This growth is despite a higher surplus recognition at UA in the fourth quarter of the previous year due to a timing difference, and the appreciation of the Sri Lankan Rupee by approximately 12%. The average exchange rate was

Rs.355 in the fourth quarter of 2022/23 compared to Rs.313 in the fourth quarter 2023/24, which had a negative translation impact on businesses with foreign currency denominated revenue streams. Further, the Group recognised of an asset write-off amounting to Rs.639 million in the Property industry group, as explained below.

• The strong growth in the Transportation industry group was driven by the Bunkering business, Lanka Marine Services, on account of a significant growth in volumes over 50% due to the Red

Sea crisis which resulted in an increase in vessel traffic to the coastal waters of Sri Lanka.

The Group’s Port and Shipping business, South Asia Gateway Terminals (SAGT), recorded an increase in throughput of 13%. which drove growth in profitability.