Hemas Holdings PLC’s recorded consolidated revenue of Rs.30.0 billion for the first six months ended September 30, 2018, a year-on-year (YoY) growth of 33.0% driven by our recent acquisition of Atlas and our healthcare sector.
“Group operating profit stood at Rs.2.4Bn, a growth of 22.5% over the previous financial year. Operating profit growth resulted from stronger performance in our home and personal care segment in Sri Lanka and the contribution by Atlas,” Chief Executive Officer, Steven Enderby.
The profit attributable to equity holders of the parent at Rs.1.5 billion is a YoY growth of 4.3%. The lower growth in earnings is due to increasednet interest expense post utilisation of cash reserves to acquire Atlas in January 2018, higher working capital due to strong revenue growth in pharmaceutical distribution and the loan financing for our new logistics park. Excluding the first six months performance of Atlas, HHL recorded consolidated revenue and operating profit growth of 16.1% and 2.3% correspondingly.
“Our consumer business recorded revenue of Rs.12.2 billion, indicating a YoY growth of 57.7%. Revenue growth in the consumer sector excluding Atlas stood at 8.2%. Operating profit of Rs.1.5 billion grew by 54.3% during the first six months compared to last year.
“Our Bangladesh business still continues to experience challenges where intense competition in a weak market environment has resulted in revenue growth of only 1.4% during the first six months of the financial year 2018-19.”
Consolidated healthcare sector revenue for the first six months under review stood at Rs.13.4Bn, a YoY increase of 27.3% while operating profit and earnings indicated a decline of 8.3% and 12.6%.
Hemas pharmaceutical distribution operation registered strong revenue growth. However, the impact of price regulation and significant currency depreciation continues to compress margins.
Hemas Hospitals achieved an overall occupancy of 57%, with revenues and profitability improvingsignificantly during Q2 compared to the first three months of the financial year and over last year.
Hemas Leisure, Travel and Aviation (LTA) interests achieved revenues of Rs.1.8 billion, reflecting a growth of 16.7% for the six months under consideration.
Hemas Logistics and Maritime recorded a revenue growth of 10.9% over last year with revenues of Rs.1.4 billion.
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