Hemas Group enjoys best quarter year-to-date

Hemas Holdings PLC Group enjoyed its best quarter year-to-date with consolidated revenues of Rs 5.3 billion, reflecting a growth of 15.2% year-on-year, and net earnings of Rs 350 million, a growth of 12.6% in the third quarter.

Earnings growth during the quarter was fuelled by the leisure, healthcare and FMCG sectors, which grew by 170.6%, 33.3% and 22.2% respectively. Hemas healthcare sector was the main contributor to the year-to-date performance with a revenue growth of 14.0% and earnings growth of 53.6%.

Nine month earnings were mainly impacted by the under performance of their power sector, which is experiencing low rainfalls in the catchment areas. As a result, Group earnings for the nine months ending December 31, 2011 declined by 6.9% to Rs 837 million, despite the Group’s strong quarterly performance. However, the Group has sustained a healthy revenue growth of 16.6% year-to-date, to close at Rs 15.3 billion.

“Our FMCG sector enjoyed a good quarter, recording a revenue growth of 17.0% to achieve Rs 1.7 billion, whilst sector profits grew at 22.4% to end the quarter at 174 million. Many of the categories Hemas serve; lotions, shampoos, hair grooming and sanitary napkins, in particular, have grown at healthy rates during the year,” said Hemas Holdings Chief Executive Officer Husein Esufally.

The healthcare sector continued to show a healthy performance recording quarterly revenue of Rs 1.8 billion (up 10.0% year-on-year) and quarterly earnings of Rs 86 million (up 33.3% year-on-year).

The Group’s second phase of hospital expansion began during the quarter, with the commencement of project work for their third hospital in Thalawathugoda.

The key highlight of their leisure sector was the reopening of Hotel Serendib under its new brand name ‘AvaniBentota’. The hotel was re-positioned as a design hotel to offer its customers a unique ‘on the beach’ experience. The total project cost was Rs 650 million and the hotel was closed for refurbishment from May to November 2011, as a result of which the quarterly revenues of the sector remained flat.

Their transportation sector achieved a revenue of Rs 182 million for the quarter ended December 31, 2011, a marginal decline of 0.6% from the previous year. The power sector recorded quarterly earnings of Rs 61 million, a year-on-year decline of 25.5%.