Hemas profits up 53% to Rs. 1.93bn

Hemas Holdings PLC saw net profits increase by 53.3 percent to Rs. 1.93 billion for the year ended March 31, 2013.

Group Revenue registered Rs 26,098 million, representing an increase of 21.2 percent over the previous period.

The group posted a growth of 42.3 percent in earnings to close at Rs. 1.6 billion. The groups’ operating profits recorded a growth of 36.4 percent to post Rs. 2.4 billion from Rs. 1.7 billion, while operating cash flows increased to Rs. 2.1 billion from Rs. 1.5 billion. The increased profit margins help drive the return on equity to improve to 14.5 percent from 12 percent.

"FMCG business enjoyed a successful year with its revenues growing by 14.5% and profits growing by 28.8%,to close at Rs 7.7 billion and Rs 745 million respectively. Despite challenges, the business was able to improve its market standing in overall terms. In Personal care, growth was driven by strong performances in Baby, Oral, Hair and Feminine hygiene categories," the company said in a statement.

"The healthcare sector performed exceptionally well during the year with a revenue growth of 20.0% and profit growth of 53.8% to close at Rs 9 billion and Rs 493 million respectively. Our Pharmaceuticals business was the largest contributor to Group revenue during the year. Hemas Pharmaceuticals continued to strengthen its market leadership position in pharmaceuticals distribution with a share of 17.9% (source: IMS). Our recent addition to the hospital portfolio, a 55-bed state-of-the-art facility at Thalawathugoda was completed in May 2013.

"The leisure sector enjoyed one of its best years, as it posted a revenue growth of 38.6% and a profit growth of 275.4% for the year under review. The sector closed the year with revenues of Rs 1.6 billion and a profit of Rs 464 million. Average occupancy across our hotel portfolio was above 75%, and Club Hotel Dolphin and AvaniBentota in particular performed exceptionally well.

"Driven by strong growth in the Aviation and Maritime business segments, our Transportation sector completed an excellent year. Sector revenues grew by 52.5% to reach Rs 1.1 billion, whilst profits increased to Rs 328 million reflecting a 33.6% growth

"The lack of rainfall in the catchment areas and depreciation of the Rupee has negatively impacted the performance of our Power sector. Despite this, sector revenues have increased 23.2% to Rs 5.5 billion, whilst sector profits have grown 12.8% to Rs 286 million."

source - www.island.lk