John Keells Holdings PLC (JKH) recorded a 26% year-on-year increase in recurring EBITDA to Rs.16.35 billion in the first quarter of the 2026/27 financial year, supported by strong performances in its Transportation, Consumer Foods and Property businesses.

The Group's recurring EBITDA rose from Rs.12.97 billion in the corresponding quarter of 2025/26, while profit attributable to equity holders improved to Rs.62 million from a loss of Rs.804 million a year earlier.

Excluding net foreign exchange losses, profit attributable to equity holders stood at Rs.1.95 billion, compared with a loss of Rs.418 million in the corresponding quarter of the previous financial year.

The Transportation sector was the largest contributor to the growth, with recurring EBITDA soaring 223% to Rs.5.01 billion from Rs.1.55 billion. The performance was driven mainly by the Group's bunkering business, Lanka Marine Services, and Colombo West International Terminal (CWIT).

CWIT continued its strong ramp-up, with throughput exceeding planned levels. Based on the recent volume run rate, the terminal has effectively reached full utilisation of its Phase 1 capacity. The development and operationalisation of the full terminal remain on track for December 2026.

Consumer Foods recurring EBITDA increased 21% to Rs.1.52 billion, supported by strong volume growth in the Beverages and Confectionery businesses, which rose 27% and 13%, respectively.

JKH is also preparing to enter Sri Lanka's quick-service restaurant market through the rollout of the internationally recognised Wendy's brand. Franchise agreements and preliminary work have been completed, with the first outlet expected to open by December 2026.

The Retail sector's recurring EBITDA declined 16% to Rs.6.16 billion, although the supermarket business continued to record strong growth. Same-store sales rose 13%, driven by a 7% increase in average basket value and 6% growth in customer footfall.

John Keells CG Auto handed over more than 2,400 vehicles during the quarter amid strong demand, although profitability was affected by a shift towards lower-priced vehicle segments.

The Leisure sector remained challenging, with the conflict in the Middle East disrupting travel and weakening sentiment in several key source markets. However, City of Dreams Sri Lanka continued its positive momentum, recording recurring EBITDA of Rs.388.7 million compared with a loss of Rs.999.7 million a year earlier. Higher hotel occupancy and average room rates supported hotel earnings, while the casino business continued to improve.

The Property sector recorded a significant increase in recurring EBITDA to Rs.679.9 million from Rs.148.5 million, driven by profit recognition from unit sales at the VIMAN, TRI-ZEN and Cinnamon Life residential projects.

Financial Services recurring EBITDA rose 9% to Rs.2.02 billion, with Nations Trust Bank benefiting from healthy loan growth and the integration of HSBC Sri Lanka's retail banking franchise, effective May 1, 2026. Union Assurance also recorded double-digit growth in gross written premiums, mainly from renewal business.

JKH also reported improvements in environmental efficiency, with carbon emissions per million rupees of revenue declining 12.2% to 0.33 metric tonnes, while water withdrawal fell 8.4% to 4.62 cubic metres per million rupees of revenue.