Hemas Holdings PLC releasing its first quarter financials for the 2011/12 financial year said its group earnings declined 10 percent from a year earlier to Rs. 262 million due to decrease in profits from its FMCG and transportation businesses, but buoyed by a healthy 132 percent growth in healthcare profits, the group saw its revenue increase 19 percent from a year ago to Rs. 4.97 billion.
"The Group achieved a revenue growth of 19 percent to close at Rs. 4.97 billion. Our Pharmaceuticals Distribution and Hospitals businesses remain the main contributors to the growth in revenue recording a year on year growth of 14 percent and 26 percent respectively, while our FMCG business achieved a revenue growth of 9 percent for the period under review. Group Earnings however declined by 10 percent over last year to Rs. 262 million, mainly due to the decrease in profits experienced by our FMCG and Transportation businesses. Our Healthcare Sector, however, enjoyed a good first quarter to record a healthy profit growth of 132 percent over the previous year," Hemas Holdings CEO Husein Esufally said.
"The FMCG business recorded a turnover of Rs. 1.6 billion, an increase of 9 percent during the quarter with our brands Fems, Goya, Kumarika and Velvet performing well following recent brand initiatives. The sector profitability showed a decrease of 29 percent to post Rs. 118 million, cascading from gross profits negatively impacted by escalating input costs. In spite of this, with the commencement of local manufacture of Diva and easing of palm oil prices, we expect the sector margins to recover in the months to come. This quarter, Clogard, launched a new ‘Multi Vitamin’ variant, whilst Kumarika introduced a new range of Shampoos and Face washes inspired around a ‘Naturals’ platform. Our production facility in Dankotuwa continued on its path towards production excellence by winning the National Quality Award, in the manufacturing category, organized annually by Sri Lanka Standards Institution (SLSI).
"The Healthcare sector enjoyed a healthy growth of 16 percent to record Rs.1.8 billion, whilst profitability grew by 132 percent to achieve Rs. 111 million. The sector performance was mainly attributable to the growth in the pharmaceutical distribution business which enjoyed a top-line growth of 14 percent. The Business growth was largely fuelled by the growth in the private pharmaceutical industry and amidst challenging market conditions the business was able to maintain its market leadership position with a market share of 16.3 percent (Source: IMS Data MAT Q1, 2011). Our Hospitals, which obtained ACHSI accreditation, enjoyed a good first quarter with growing in-patient numbers and increasing number of operations which contributed to the 26 percent growth in the Hospital topline. Our flagship hospital in Wattala reached a significant milestone by achieving a profit breakeven position in June 2011. We also initiated a programme to train nurses at the Open University and Aquinas University College which would add approximately 250 nurses a year to the industry, whilst a new collection lab was established at Ja-ela.
An expansion plan to add two more hospitals to the chain is well underway and we have been successful in securing a land at Battaramulla to construct our third hospital.
"The Leisure sector completed the first quarter with a 44 percent growth in turnover to close at Rs. 209 million, mainly due to a 106 percent growth in revenue enjoyed by Hotel Dolphin. With Hotel Serendib closed for refurbishment during the quarter, profitability for the sector took a dip to record a loss of Rs. 22 million. Despite the off-peak season all our hotels have enjoyed occupancy rates in excess of 70 percent and we expect refurbishment of Hotel Serendib to be completed in time for the upcoming winter season. The Hotel would be repositioned as a ‘Design hotel’ creating a unique ‘on the beach’ experience for our visitors.
source - www.island.lk
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