Hemas records Rs 258m profit

Hemas Group recorded a turnover of Rs 3.5Bn and Profit after tax of Rs 258 million in the quarter ended December, reflecting a year on year growth of 26 per cent and 25 per cent respectively.

The growth in the Fast Moving Consumer Goods (FMCG) and Healthcare sectors were the main contributors to growth this quarter with bottom line growth of 20% in both sectors.

Operating profits for the period was Rs 407 million with an improvement in the margin from 9 per cent in the last quarter, to 12 per cent. Investment relief resulted in lower taxation liability for the group for the quarter under review boosting bottom line growth.

Growth in quarterly profits in the FMCG sector by 21 per cent year on year to Rs 125Mn on a turnover of Rs 1.03 billion was achieved due to cost containment and phased price adjustments as indicated in my last review.

Our personal care portfolio did well to increase market share during the quarter, although overall industry growth was dampened. The relocation of the manufacturing plant to Dankotuwa is progressing as planned and the new manufacturing facility will be operational from April this year.