Hemas earnings top Rs 291 million in Q2

Hemas Holdings Plc consolidated revenues have increased by 14 percent to Rs 4.3bn and net earnings have increased by an impressive 61 percent to close at Rs 291mn for the quarter ended June 30,2010.

Chief Executive Officer Hemas Holdings Plc Husein Esufally said revenue growth was driven by the pharmaceuticals business, hospitals and leisure, whilst growth in net earnings are largely attributable to power and pharmaceuticals, and the reduction of losses at hospitals.

Hemas CEO Husein Esufally

FMCG sector revenues grew by 6 percent during the quarter to report a turnover of Rs 1.4Bn. Despite the slow start, we anticipate a higher growth in sales volumes in the coming quarters. Net profits declined 5 percent to Rs 166Mn, mainly due to increased marketing investments.

Our Pharmaceuticals business showed good growth, with revenues increasing by 28 percent. The business successfully held its market leadership position with a 16.5 percent share (source: IMS). Hospital revenues have increased by 55 percent year-on-year, for the quarter under review, he said.

Leisure sector revenues have increased by 68 percent for the quarter under review on the back of the tourism boom in the post-war Sri Lanka.

Tourist arrivals have increased by 46 percent year-on-year for the quarter under review, and the hotel industry is enjoying increased room rates and occupancies.

In view of the brighter industry prospects, we have embarked on an upgrading and repositioning plan for our existing resorts and a development plan to add new resorts to our portfolio.

Our Aviation business, which experienced a modest period last year, bounced back with an 18 percent growth in revenues and a 28 percent growth in profits, he said.

Power sector profits have increased significantly, from Rs 8mn during the first quarter of last year to Rs 60mn for the quarter ended June 2010. The two operational hydro power plants, which account for 4.6MW, have performed well during the quarter. We have commenced the development of 2.4MW hydro plant in Upper Magal Ganga, which we expect to complete during 2011, he said.