John Keells Holdings PLC (JKH) reported a robust financial performance for the financial year 2025/26, recording substantial growth across key sectors as the Group began to benefit from major investments completed over recent years, according to a company media release issued last week.
The Group reported a 75 percent increase in EBITDA, reaching Rs. 80.01 billion, reflecting strong contributions from both newly operational investments and the continued resilience of its established business portfolio.
Meanwhile, Group recurring EBITDA rose significantly by 71 percent, climbing to Rs. 78.05 billion from Rs. 45.69 billion recorded in the previous year. The strong performance was largely supported by the Retail, Transportation, and Leisure sectors, which delivered notable improvements throughout the financial year.
The Group also recorded impressive profitability gains, with recurring profit before tax increasing by 143 percent to Rs. 35.72 billion, while recurring profit attributable to equity holders surged 155 percent to Rs. 13.24 billion, compared to the previous year.
FY2025/26 marked a significant milestone for John Keells Holdings PLC, as the Group completed the largest investment phase in its history. Several strategic projects became fully operational during the year, signalling a transition from large scale development to earnings generation.
In line with expectations, funding requirements gradually reduced, while the Group maintained healthy financial stability, reporting a net debt to EBITDA ratio of approximately two times and a net debt to equity ratio of around 31 percent.
One of the year’s major highlights was the performance of City of Dreams Sri Lanka, which recorded a positive EBITDA for the full year following the completion and launch of the remaining components of the integrated resort. The company noted that Cinnamon Life’s conference and event facilities attracted both local and international organisers, while casino operations gained encouraging momentum from the fourth quarter onwards.
The Colombo West International Terminal also delivered strong performance during the year, benefiting from improved cargo volumes and throughput growth. Despite depreciation costs related to Phase 1 development, the business recorded a positive profit after tax ahead of expectations and achieved full utilisation of its Phase 1 capacity, based on recent operational performance.
In the automotive sector, John Keells CG Auto experienced an exceptional year, supported by strong consumer demand for vehicles and the growing market positioning and model portfolio of BYD.
The Group’s retail segment also reported encouraging results, with the supermarket business recording approximately 14 percent growth in same store sales, driven mainly by a 14.3 percent increase in customer footfall. Additionally, the Beverages and Confectionery businesses reported healthy volume growth, although confectionery margins experienced pressure due to rising raw material costs and expenses linked to new product launches.
The Leisure industry group recorded notable EBITDA growth during the year, supported by improved occupancy levels and stronger profitability across all segments.
Further strengthening its property portfolio, John Keells Properties launched Vauxhall DSTRCT in March 2026, a 749 unit residential development located in Colombo 2, adding to the Group’s growing real estate footprint.
Meanwhile, Nations Trust Bank reported stronger profitability, supported by healthy loan growth and lower impairment levels. The bank also completed the acquisition of HSBC Sri Lanka’s retail banking franchise on May 1, 2026, with operations commencing immediately thereafter.
Insurance arm Union Assurance also recorded positive momentum, posting encouraging double digit growth in gross written premiums during the year.
Reflecting the Group’s improved financial performance, return on capital employed (ROCE) increased to 9.0 percent in FY2025/26, compared to 5.1 percent in the previous year. Excluding the integrated resort, which recently commenced operations, the remainder of the Group’s portfolio achieved a ROCE of 17 percent, underlining the strong returns generated by its established businesses.
