Hemas turnover grows 16%
During the nine months ended 31st December 2008, the company’s core
businesses have performed well in a difficult environment, although
overall earnings have declined due to start-up costs of new business
ventures. During this period, Group turnover grew 16% to Rs. 11.8
billion but operating profits declined 9% to Rs 974million.
Group earnings during this period was Rs 574Mn, a drop of 14%
year-on-year. For the quarter ended 31 December 2008, Group turnover was
Rs 3.9Bn (up 13% year-on-year) and Group earnings stood at Rs 199Mn
(down 24% year-on-year).
During the nine months under review FMCG recorded a turnover of Rs
3.5Bn, an increase of 13% over the corresponding period last year.
Operating profit for the period increased 18% year-on-year to Rs 443Mn.
Overall demand for most categories remained stable and the key brands
continue to retain their market standing.
A program to educate parents on the importance of early childhood
development named ‘Daru Patiyage Lokaya’ supported by ‘Baby Cheramy’ was
launched by the Ministry of Child Development reinforcing the company’s
long term commitment to child care.
‘Diva’, the brand of Detergent powder received the Gold award for
Local Brand of the Year and the Silver award for Product Brand of the
Year presented by the Sri Lanka Institute of Marketing.
The Healthcare sector recorded a turnover of Rs 2.8Bn for the nine
months ending 31st December, representing a 23% growth over the
corresponding period last year. Initial operating losses of the Hospital
operation contributed to a 24% drop in operating profits of the
Healthcare Sector, which stood at Rs 135Mn for the nine months ending
31st December.
The highlight of the period under review was the formal opening of
Hemas’ first 100-bed hospital in Wattala which commenced full operations
in December.
The hospital is now well frequented by leading consultants and
initial patient feedback has been encouraging. There has been some delay
in completing the new wing at Southern Hospital, Galle which is now
expected to be completed by March 2009. The business of pharmaceutical
distribution posted an impressive growth whilst increasing its market
share to 15.8% hence reinforcing its market leadership.
Hemas Holdings PLC - Interim Report 3rd Quarter 2008-2009 and the
Leisure Sector ended up recording a turnover of Rs 699Mn for the nine
months under review, a marginal 5% decline year-on-year. Operating
profit for the nine months was Rs 27Mn, a decline of 20% over last year.
Hotel Dolphin, Waikkal maintained occupancy levels over 85% while the
two properties in Bentota and Sigiriya achieved average occupancies of
only 40%.
Exchange losses due to the appreciation of the Rupee against the
Sterling also impacted profits of the sector.
Diethelm Travel Sri Lanka completed its reorganization in order to
build a competitive advantage going forward. During the nine months
ended December 2008, the Transportation Sector continued its good
performance recording a 21% increase in revenue to Rs 532Mn and a 68%
growth operating profits, which stood at Rs 197Mn.
In the Aviation segment, Hemas Travels performed creditably with a
strong growth in profits during the quarter while Airline GSA division
saw increased passenger sales although there was a dip in cargo sales.
In the Maritime segment, the Ship Agency business reported steady growth
in transshipment TEUs.
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