Hemas Group delivers earnings growth of 31.6% in FY 2016/17

Hemas Holdings PLC (HHL) and its subsidiaries achieved consolidated revenues of Rs.43.4 billion year-on-year (YoY) growth of 14.3% for the 12 months ended March 31, 2017.

During this period, operating profit reached Rs.4.8 billion and PAT Rs.3.8 billion, growth of 21.3% and 28.3% respectively. Overall, the Group has grown strongly over last year; however, a multitude of factors such as increasing VAT rates, the introduction of VAT at hospitals, new pharmaceutical pricing regulation, and increasing inflation have impacted profitability during the second half of the year.

“Despite this, we have seen limited signs of recovery during Q4,achieving revenue growth of 18.4% and PAT growth of 36.8% compared with the same period last year,” Steven Enderby, Group Chief Executive Officer said.

The Group’s home and personal care business delivered revenues of Rs.16 billion, a 12.0% increase over the previous financial year. Operating profits were Rs.2.1 billion, 17.3% YoY growth.

“We also commissioned a new soap plant at our Sri Lankan manufacturing facility.”

Local growth is predominantly driven by market share improvement in our personal care and personal wash portfolio. The healthcare sector registered total revenue of Rs.18.8Bn, a growth of 16.7% for the full year. Operating profit and PAT grew at 15.9% and 17.3%, to achieve Rs.2.1Bn and Rs.1.4Bn respectively.”

J. L. Morison recorded YoY top-line growth of 6.7% and operating profit growth of 21.8% for the year ended March 31, 2017. Our Rx Pharma portfolio continued to do well benefiting from new product launches.

“Leisure, Travel and Aviation (LTA) business recorded a total revenue of Rs.4.3billion reflecting1.3% YoY growth for the twelve months ended March 31, 2017. Hotels sector performance stagnated with a topline of Rs.1.8 billion during the year 2016/17. Fall in segmental profitability during the year was compounded by losses at Anantara Peace Haven Tangalle Resort which is in its first full year of operations.

Hemas Logistics and Maritime recorded a top-line growth of 103.4% over last year recording a top-line of Rs.1.9 billion. This growth has been driven by its new maritime agency, Evergreen.

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Hemas to invest US$ 18.7 mn on R&M facility, Logistics Park

J. L. Morison has announced plans to set up a new research and manufacturing facility located within the SLINTEC Nano technology park in Homagama at an estimated cost of US$ 13.5 million.

Hemas is further strengthening its presence in the logistics space by constructing a new state-of-the-art Logistics Park to consolidate warehousing, improve capacity and provide a range of new services to clients.

This new investment is through a joint venture with GAC and the investment will be US$ 5.2 million 


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