Hemas 1Q consolidated revenue tops Rs. 6.3 b

Hemas Holdings PLC recorded a consolidated revenue of Rs 6.3 billion and earnings of Rs 334 million under the new Sri Lanka Financial Reporting Standards (SLFRS) published for the quarter ended June 30 2012.

“The performance of the Group as a whole, and many of our sectors, was encouraging despite a challenging economic environment where inflation, interest rates and exchange rates remained unfavourable, “said CEO, Hemas, Husein Esufally.

Group recorded consolidated revenues of Rs 6.3 billion, a year-on-year growth of 27.1% and earnings of Rs 347 million, a year-on-year growth of 32.3%. Revenue growth was driven by Power, Healthcare and FMCG sectors recording growth levels of 52.3%, 22.1% and 13.8% respectively.

FMCG, Leisure, Healthcare and Transportation sectors, which recorded a growth of 38.3%, 124.8%, 22.7% and 62.0% respectively, were the key contributors to the impressive earnings growth during the quarter.

“Our FMCG sector enjoyed a good first quarter posting a growth of 13.8%, to record a revenue of Rs. 1.8 billion. Sector revenues were driven by the growth in our hair care, skin care, personal wash and home care categories. Earnings grew by 38.3% to record Rs. 163 million for the quarter, notwithstanding a depreciating rupee which contributed to an increase in raw material costs during the period.

During the quarter our personal care portfolio strengthened its market position, with our toothpaste, sanitary napkin and hair oil products increasing its market share.”

The Healthcare sector achieved a revenue growth of 22.1% to record Rs. 2.2 billion, driven by a successful quarter enjoyed by both our pharmaceutical distribution and hospitals businesses, giving rise to a growth in earnings of 22.7% to post Rs. 142 million. “Our Pharmaceutical business saw its market share grow to 17.32% (Source: IMS) with a revenue growth of 20.8%.”

“Our Leisure sector posted a revenue growth of 38.6% to record Rs. 289 million, largely driven by the Hotel sector.”

The Transportation sector enjoyed a revenue growth of 25.3% to record Rs. 227 million, whilst sector earnings grew by 62.0% to Rs. 68 million.

The Power sector recorded a revenue growth of 52.3% led by an increase in revenue at our thermal power plant Heladhanavi due to the pass through effect of increasing furnace oil prices. However, sector profitability plunged by 54.4% to record Rs. 30Mn due to exchange losses on foreign currency borrowings at Heladhanavi, a greater part of which is a result of translation losses, which has no cash flow implication.