Ceylon Cold Stores PLC, a subsidiary of John Keells Holdings, has showcased robust financial performance for the April-June quarter of fiscal year 2025, signaling a resurgence in consumer spending. The company achieved a top line of Rs. 38.1 billion, marking a 10% increase from the same period in 2023.
Operating profits surged by 69% to Rs. 2.33 billion, highlighting significant growth in profitability.
The company’s manufacturing segment, known for Elephant House-branded products such as frozen confectioneries, beverages, and dairy items, reported revenues of Rs. 8.42 billion, up 14.6% year-on-year. This indicates a gradual rebound in consumer demand for discretionary items, which had previously been suppressed by high inflation and interest rates.
In addition, the retail arm, represented by Keells Super supermarkets, saw revenues of Rs. 30.52 billion, reflecting an 8.4% growth from the previous year. Earnings from both segments have tripled compared to the same period last year.
On a consolidated basis, Ceylon Cold Stores reported earnings of Rs. 1.24 per share, totaling Rs. 1.17 billion, compared to Rs. 0.34 per share or Rs. 322.17 million in the previous year. This improvement reflects a clear turnaround in the company’s performance across its major business segments.
Net finance costs fell sharply by 38% to Rs. 596.4 million, driven by reduced borrowings and easing interest rates.
These results suggest that Sri Lankan consumers are gradually recovering from the economic challenges of the past two years. The company’s increased revenue and improved profitability are attributed to lower inflation, reduced borrowing costs, and enhanced operational efficiency.
The company’s share price remained steady at Rs. 56.10, and it declared a first interim dividend of 73 cents. John Keells Holdings PLC holds a 70.66% stake in Ceylon Cold Stores.