John Keells Holdings (JKH) has delivered a strong start to the 2026/27 financial year, reporting a 26% increase in Group EBITDA to Rs. 16.35 billion for the first quarter ended June 30, 2026. The performance highlights a significant turnaround in profitability and robust growth across key infrastructure and consumer segments.

Financial Turnaround and Key Drivers

The Group recorded a profit attributable to equity holders of Rs. 62 million for the quarter, marking a sharp recovery from the Rs. 804 million loss reported in the corresponding period last year. Excluding net exchange losses, the underlying profit for the quarter was a robust Rs. 1.95 billion, compared to an underlying loss of Rs. 418 million in the previous year.

The Transportation industry group was a standout performer, with its EBITDA soaring by 223% to Rs. 5 billion. This growth was primarily driven by the Colombo West International Terminal (CWIT) and the Group’s bunkering business, Lanka Marine Services (LMS). CWIT has already reached full utilization of its Phase 1 capacity, with the full terminal remaining on track for completion by December 2026.

Consumer and Retail Expansion

JKH announced a strategic diversification into the Quick Service Restaurant (QSR) segment through a franchise agreement with the international brand ‘Wendy’s’. The first outlet is expected to open by December 2026. Within existing operations:

• Consumer Foods: Recorded 21% EBITDA growth, supported by strong volume increases in Beverages (27%) and Confectionery (13%).
• Supermarkets: EBITDA grew by 16%, with same-store sales rising 13% due to higher customer footfall and average basket value.

Real Estate and Financial Services Momentum

The Property sector saw an exceptional 358% increase in EBITDA, fueled by revenue recognition from residential sales at the VIMAN, TRI-ZEN, and Cinnamon Life development projects.

In Financial Services, EBITDA grew by 9%. This was supported by Nations Trust Bank’s (NTB) robust performance and the successful integration of HSBC Sri Lanka’s retail banking franchise, which was completed in May 2026.

Mixed Results in Leisure and Auto

The Leisure group faced a challenging environment due to the conflict in the Middle East impacting travel sentiment. However, City of Dreams Sri Lanka maintained positive momentum, with its EBITDA rising 139% due to improved hotel occupancy and casino rental income.

In the automotive sector, John Keells CG Auto handed over more than 2,400 vehicles during the quarter. While demand remained strong, profitability was moderated by a shift toward lower-priced vehicle segments.

Sustainability Milestones

The Group continues to improve its environmental efficiency, reporting a 12.2% reduction in its carbon footprint and an 8.4% decrease in water withdrawal per million Rupees of revenue.