Sri Lanka’s largest listed conglomerate, John Keells Holdings (JKH), has reported a sharp improvement in earnings for the financial year ended March 31, 2026, as major investments made over recent years began contributing meaningfully to performance, marking a turning point in the Group’s growth trajectory.

The Group recorded a 75% increase in EBITDA to Rs. 80.01 billion, supported by strong performances across its Retail, Transportation and Leisure sectors and increasing returns from recently commissioned strategic investments. Recurring EBITDA rose 71% to Rs. 78.05 billion, while recurring profit before tax surged 143% to Rs. 35.72 billion. Profit attributable to equity holders rose 155% to Rs. 13.24 billion during the year under review.

The results signal the culmination of what JKH described as the largest investment phase in its history, with the Group now shifting from a capital deployment cycle to one focused on operational contribution and cash generation. Management indicated that funding requirements are expected to reduce significantly as key projects enter full operation. Net debt to EBITDA stood at approximately two times while net debt to equity remained at about 31%, reflecting what the Group described as a comfortable and flexible balance sheet position.

One of the key contributors to the Group’s changing fortunes was the integrated resort project, City of Dreams Sri Lanka, which recorded a positive EBITDA contribution for the full year after the completion and launch of its remaining components. The project’s Cinnamon Life conference and event facilities have already begun attracting local and international organisers, while casino operations gained momentum, particularly during the fourth quarter.

Meanwhile, the Colombo West International Terminal (WCT-1) exceeded expectations during its first year of operations. The terminal reached full utilisation of Phase One capacity based on current throughput rates and generated profits ahead of forecasts despite accounting for depreciation charges. The terminal's rapid uptake has also strengthened throughput at the Port of Colombo, reflecting strong market demand.

The Group’s retail and automotive sectors delivered standout performances. John Keells CG Auto posted exceptional growth, benefiting from pent-up demand and the strong market positioning of BYD vehicles. The supermarket business also recorded robust expansion, with same-store sales increasing by around 14%, driven largely by increased customer footfall.

In the consumer foods segment, beverages and confectionery businesses reported strong volume growth, although profitability in confectionery came under pressure from higher raw material costs and expenses linked to new product launches.

JKH’s leisure sector also recorded significant gains with improved occupancy levels supporting profitability across all segments. In property development, the Group launched Vauxhall DSTRCT, a 749-unit residential development in Colombo 02, further strengthening its real estate portfolio.

Within financial services, Nations Trust Bank reported stronger profitability driven by loan growth and lower impairments, while also completing the acquisition of the retail banking operations of HSBC in Sri Lanka effective May 1, 2026.

The Group’s return on capital employed improved to 9% from 5.1% a year earlier. Excluding the integrated resort business, which recently entered operations, the rest of the portfolio generated a stronger return of 17%, reflecting the earnings potential of JKH’s established businesses.

The latest performance reinforces the Group’s confidence that years of investment are beginning to generate broader earnings contributions and stronger returns, positioning JKH for its next phase of growth.