Q2 FY 2018/19 Earnings Update November 2018 Jetwing Symphonys - - PowerPoint PPT Presentation

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Q2 FY 2018/19 Earnings Update November 2018 Jetwing Symphonys - - PowerPoint PPT Presentation

Aug 14, 2023 505 likes •677 views

Q2 FY 2018/19 Earnings Update November 2018 Jetwing Symphonys operation portfolio Jetwing Lake (Dambulla) Jetwing Kaduruketha (Wellawaya) A luxurious resort set in the center of centuries of ancient Sri Lankan history The first agro luxury

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SLIDE 1

November 2018

Q2 FY 2018/19 Earnings Update

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SLIDE 2

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Jetwing Lake (Dambulla)

A luxurious resort set in the center of centuries of ancient Sri Lankan history Rooms : 94 Occupancy : 60% ARR : 12,202

Jetwing Symphony’s operation portfolio

Jetwing Colombo Seven (Colombo)

The group’s first luxury hotel in the commercial capital

  • ffering

an urban experience in the city Rooms : 98 Occupancy : 70% ARR : 12,582

Jetwing Yala (Yala)

A luxurious resort offering a wilderness experience by the beach Rooms : 90 Occupancy : 67% ARR : 17,030

Jetwing Kaduruketha (Wellawaya)

The first agro luxury eco tourism hotel in Sri Lanka

  • ffering

their guests unique experiences Rooms : 25 Occupancy : 53% ARR : 20,594

Jetwing Surf (Pottuvil Point)

The first high end resort in Pottuvil Point constructed with a minimum carbon footprint Rooms : 20 Occupancy : 59% ARR : 32,030

*Figures furnished are for Q2 FY19

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SLIDE 3

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Our key performance highlights

Group highlights Q2FY19

Revenue

LKR 520Mn (+36%)

Revenue growth of 36% primarily supported by Jetwing Lake and Jetwing Kaduruketha, which recorded substantial increases in revenue

EBITDA

LKR 194Mn (+81%)

EBITDA margins improved by

  • c. 81% from the last

corresponding quarter with all

  • perational hotels seeing

healthy growth in EBITDA

EBIT

LKR 112Mn (+286%)

EBIT margins improved by c. 286% from the last corresponding quarter with all

  • perational hotels performing

exceptionally well despite a rocky bottom line primarily due to foreign exchange losses

Occupancy

  • c. 64%

The Group reported an

  • ccupancy of c. 64%. Jetwing

Yala, Jetwing Lake and Jetwing Kaduruketha recorded increases in occupancy compared to the corresponding previous quarter

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SLIDE 4

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LKR Mn Q2 FY18 Q2 FY19 QoQ 1H FY18 1H FY19 YoY FY 19 IPO Forecast** Revenue 383 520 36% 650 819 26% 2,354 Gross Profit 314 439 40% 524 681 30% 1,909 EBITDA 107 194 81% 129 241 87% 778 EBIT 29 112 286% (25) 77 408% 375 PAT* (78) 3 104% (233) (138) 41% (78) PAT (75) (81)

  • 8%

(239) (239) 0% (100) GP Margin 82% 84% 81% 83% EBITDA Margin 28% 37% 20% 29% EBIT Margin 8% 22%

  • 4%

9% NP Margin

  • 20%
  • 16%
  • 37%
  • 29%

Gearing Ratio 47% 46% 47% 46%

*Excludes foreign exchange conversion gains/losses

  • The Group revenue grew by

36% whilst EBITDA and EBIT recorded a growth of 81% and 286% respectively, over the last corresponding quarter

  • The

main contributors to EBITDA was Jetwing Colombo Seven and Jetwing Yala, recording figures of LKR 58mn and LKR 56mn respectively

  • The Group made a profit of LKR

3mn on a recurring basis. The performance in 1H FY19 improved by 41% to reduce the loss to LKR 138mn in comparison with 1H FY18.

Jetwing Symphony records improved performance across parameters with a 36% revenue growth and 286% EBIT growth in the Q2FY19

**Full Financial Year Forecast. Source: Jetwing Symphony IPO Prospectus – Independent Valuation Report

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  • Jetwing Yala, Jetwing Colombo Seven and Jetwing Lake were the

top revenue contributors for the Group (together accounted for 84%

  • f Group revenue)
  • Jetwing Yala, Jetwing Kaduruketha, Jetwing Lake and Jetwing Surf

witnessed an increase in overall occupancy while all properties recorded higher ARRs

  • All hotels have effectively controlled operational costs, resulting in

healthy EBIT and EBITDA margins

Clear growth across the board with the five Symphony hotels contributing to an EBITDA growth of 81% for Q2FY19

200 400 600 800 1,000 Q2 FY18 Q2 FY19 1H FY18 1H FY19

Revenue (LKR Mn)

(40) 40 80 120 160 200 240 280 Q2 FY18 Q2 FY19 1H FY18 1H FY19

EBITDA (LKR Mn)

Jetwing Surf Jetwing Colombo Seven Jetwing Lake Jetwing Kaduruketha Jetwing Yala

36% 81%

60.4% 33.4% 2.4% 3.8%

Revenue Composition

Rooms Food & Beverage Banquet Spa and Other Income Q2 FY19 26% 87%

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SLIDE 6

Our Operational Hotel Performance

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58.2% 37.9% 3.9%

Q2 FY19

Rooms Food & Beverage Spa and Other Income

Jetwing Yala – Steady QoQ growth in Revenue and EBIT driven by increase in occupancy and ARR of hotel rooms

LKR Mn Q2 FY18 Q2 FY19 QoQ 1H FY18 1H FY19 YoY Revenue 144 164 14% 260 273 5% Gross Profit 120 137 14% 212 222 5% EBITDA 48 56 17% 78 79 1% EBIT 27 35 30% 36 38 6% PAT* 10 16 60% 2 4 100% PAT 11 (1)

  • 109%

(1) (19)

  • 1,800%

*Excludes foreign exchange conversion gains/losses

GP Margin 83% 84% 82% 81% EBITDA Margin 33% 35% 30% 29% EBIT Margin 19% 22% 14% 14% NP Margin 8%

  • 1%

0%

  • 7%
  • Occupancy of tented villas reduced due to ongoing construction work in line

with the repositioning of tented villas as Jetwing Safari Camp

  • Profit, excluding foreign exchange losses, increased by 60% from the

corresponding quarter for FY18

16 17 22 21 0% 10% 20% 30% 40% 50% 60% 70% 80% 5 10 15 20 25 Q2 FY18 Q2 FY19 Thousands ARR Hotel ARR Tented Villas Occupancy Hotel Occupancy Tented Villas

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Jetwing Safari Camp – Repositioning itself as true luxury wild life experience for guests

  • Jetwing Tented Villas was rebranded as Jetwing Safari Camp, a boutique hotel which would offer

highly personalized and exclusive experiences for its guests

  • With Yala being Sri Lanka’s most popular national park, Jetwing Safari Camp would cater to a niche market
  • f wildlife enthusiasts. The luxury tents would be marketed to the high end tourism market, focusing on

European, Canadian and Australian wildlife aficionados

  • Jetwing Safari Camp is scheduled to re-open in November 2018

Developments of Jetwing Safari Camp Rebranded as Jetwing Safari Camp for search engine

  • ptimization

Online booking sites and social media updated to the rebranding and revised rates Completed construction of restaurant and bar dedicated for Jetwing Safari Camp Training of rangers to offer wildlife packaged experiences to guests

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63.9% 32.9% 3.2%

Q2 FY19

Rooms Food & Beverage Spa and Other Income

Jetwing Kaduruketha – 95% revenue growth as the hotel reaps benefits from its positioning as a luxury eco-resort in Sri Lanka

LKR Mn Q2 FY18 Q2 FY19 QoQ 1H FY18 1H FY19 YoY Revenue 20 39 95% 33 52 58% Gross Profit 17 35 106% 27 45 67% EBITDA 1 13

1,200%

(2) 10 600% EBIT (2) 9 550% (8) 2 125% PAT* (10) 5 150% (23) (6) 74% PAT (10) 2 120% (24) (9) 63%

*Excludes foreign exchange conversion gains/losses

GP Margin 85% 90% 82% 87% EBITDA Margin 5% 33%

  • 6%

19% EBIT Margin

  • 10%

23%

  • 24%

4% NP Margin

  • 50%

5%

  • 73%
  • 17%
  • With its positioning in line with the standards of luxury eco-resorts resulted in

Jetwing Kaduruketha achieving an 82% increase in ARR and a 23% increase in

  • ccupancy

11 21 0% 10% 20% 30% 40% 50% 60% 5 10 15 20 25 Q2 FY18 Q2 FY19 Thousands Total ARR Total Occupancy

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46.1% 50.2% 3.7%

Q2 FY19

Rooms Food & Beverage Spa and Other Income

Jetwing Lake – Significant QoQ revenue and EBITDA growth driven by an increase in F&B contribution

LKR Mn Q2 FY18 Q2 FY19 QoQ 1H FY18 1H FY19 YoY Revenue 81 121 49% 130 185 42% Gross Profit 61 100 64% 98 150 53% EBITDA 12 38 217% (2) 40

2,100%

EBIT (12) 15 225% (50) (7) 86% PAT* (53) (22) 58% (127) (80) 37% PAT (52) (33) 37% (127) (93) 27%

*Excludes foreign exchange conversion gains/losses

GP Margin 75% 83% 75% 81% EBITDA Margin 15% 32%

  • 2%

22% EBIT Margin

  • 15%

13%

  • 38%
  • 4%

NP Margin

  • 64%
  • 28%
  • 98%
  • 50%
  • Jetwing Lake recorded an ARR of LKR 12,202 for the quarter which is a 68%

improvement from the corresponding quarter

  • Effective control on costs has resulted in an EBITDA margin improving to 32%
  • On the sustainability front, Jetwing Lake also implemented a number of green

initiatives during the quarter

7 12 56% 57% 58% 59% 60% 61% 2 4 6 8 10 12 14 Q2 FY18 Q2 FY19 Thousands Total ARR Total Occupancy

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61.5% 27.3% 7.0% 4.2%

Q2 FY19

Rooms Food & Beverage Banquet Spa and Other Income

Jetwing Colombo Seven – Albeit marginal top-line growth, operational efficiencies resulted in an EBIT growth of 53%

LKR Mn Q2 FY18 Q2 FY19 QoQ 1H FY18 1H FY19 YoY Revenue 137 145 6% 226 237 5% Gross Profit 115 124 8% 187 202 8% EBITDA 48 58 21% 60 82 37% EBIT 19 29 53% 2 25

1,150%

PAT* (23) (15) 35% (81) (62) 23% PAT (22) (65)

  • 195%

(84) (121)

  • 44%

*Excludes foreign exchange conversion gains/losses

GP Margin 84% 86% 83% 85% EBITDA Margin 35% 41% 27% 35% EBIT Margin 14% 21% 1% 11% NP Margin

  • 16%
  • 46%
  • 37%
  • 51%
  • Occupancy rates of deluxe rooms fell due to the reduction of business from low-

end travel agents

  • Deluxe room ARR increased by 13% to LKR 12,186 while ARR of apartments

increased by 19% to LKR 14,222 resulting in a top-line growth of 3%

11 12 12 14 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2 4 6 8 10 12 14 16 Q2 FY18 Q2 FY19 Thousands ARR Deluxe Rooms ARR Apartments Occupancy Deluxe Rooms Occupancy Apartments

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71.1% 26.1% 2.8%

Q2 FY19

Rooms Food & Beverage Spa and Other Income

Jetwing Surf – Increased occupancy and ARR resulted in profits for Q2FY19

LKR Mn Q1 FY19** Q2 FY19 QoQ 1H FY18 1H FY19 Revenue 22 50 127%

  • 71

Gross Profit 17 44 159%

  • 61

EBITDA 1 21 2,000%

  • 22

EBIT (3) 16 633%

  • 12

PAT* (11) 8 173%

  • (8)

PAT (11) 6 155%

  • (6)

*Excludes foreign exchange conversion gains/losses

**The comparison is done with the previous quarter as operations commenced in December 2017

GP Margin 77% 88% EBITDA Margin 5% 43% EBIT Margin

  • 14%

33% NP Margin

  • 50%

12%

  • Jetwing Surf saw the ARR almost double resulting in promising profit

margins and a significant QoQ EBITDA growth

  • Occupancy improved to c. 60% inline with the annual seasonality

17 32 0% 10% 20% 30% 40% 50% 60% 70% 5 10 15 20 25 30 35 Q1 FY19** Q2 FY19 Thousands Total ARR Total Occupancy

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Jetwing Symphony hotels are widely popular and are consistently lauded by our guests

Source: TripAdvisor

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SLIDE 14

Progress Update

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Jetwing Symphony has continued to make progress on multiple fronts during the quarter

Status update on the Jetwing Kandy Gallery Project

  • Jetwing’s latest project is an attempt to create an immersive experience of the rich Kandyan heritage, for its guests
  • Over 90% of excavation and earth work completed has been completed to date while construction of the super

structure commenced during the quarter Symphony Hotels consistently felicitated with a multitude of awards

Jetwing Lake PATA Gold Award Corporate Environmental Programme Jetwing Lake Gold Award (Large Scale Hotels) - Sri Lanka National Energy Efficiency Awards Jetwing Kaduruketha Silver Award (Medium Scale Hotels) - Sri Lanka National Energy Efficiency Awards *Current construction progress

Stage Stage of Completion Excavation and Earth Works 90% Reinforcement Work 36% Shuttering Work 36% Concrete Work 53% Super Structure 16%

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SLIDE 16

Q&A