Hemas Group posts Rs 4.3bn operating profit in 9 months | Daily News

Hemas Group posts Rs 4.3bn operating profit in 9 months

CEO, Steven Enderby
CEO, Steven Enderby

The Hemas Group reported a consolidated revenue of Rs.48 billion for the nine months ended December 31, 2018, indicating a Year-over-Year (YoY) growth of 37.8%, primarily driven by our acquisition of Atlas.

Group operating profit stood at Rs.4.3billion , a growth of 45.8% over the previous financial year.

The profit attributable to equity holders of the parent at Rs.2.5 billion is a YoY growth of 19.2%. HHL delivered year-to-date organic revenue growth of 15.7% and a recurring organic operating profit growth of 2.6%, excluding Atlas performance and the disposal gain arising from the Galle Hospital divestment, said Steven Enderby, Chief Executive Officer, Hemas Group. Organic profitability growth remains as a challenge due to unprecedented rupee depreciation coupled with price controls at Pharmaceutical distribution and Morison. Unrealised forex losses arising from the translation of foreign currency denominated loan at our Anantara Peace Haven Tangalle hotel made a negative contribution to operating profit of Rs.174Mn, 5.7% of recurring operating profit’’.

HHL achieved higher revenues and profit growth primarily due to the solid performance at Atlas, during its critical Q3 peak season.

The quarter recorded a revenue and operating profit of Rs.18.billion and Rs.1.9 billion , a YoY growth of 46.8% and 92.6% correspondingly.

“During the period under review, our consumer business recorded a revenue of Rs.20.3 billion , indicating a YoY growth of 73.0%. Operating profit of Rs.2.8 billion grew by 100.1% during the nine months ended December 31, 2018 compared to last year. Over 85.0% of the revenue growth was driven by Atlas, which performed well during its back to school season’’.

“The performance in our Bangladesh personal care business is now stabilising with year-to-date revenues recording a modest growth of 4.4%. Atlas has recorded a solid performance during Q3 with year-to-date revenues up by 13.0% over the same period last year’’.

Healthcare sector achieved a consolidated revenue of Rs.20.5 billion , a YoY increase of 23.6% while operating profit and earnings indicated a decline of 10.3% and 13.8% respectively.

“Our pharmaceutical manufacturing business, Morison posted a revenue of Rs.2.5 billion and operating profit of Rs.186.4 Mn for the nine months ended December 31, 2018’’.

Hemas Leisure, Travel and Aviation (LTA) sector achieved revenues of Rs.3.1billion , reflecting a growth of 19.3% for the nine months under consideration. Serendib Hotels recorded a strong quarter, with an average occupancy reaching 86% across its own managed hotels, 5% growth over same quarter last year. Travel and Aviation grew steadily through the year and recorded a growth in revenue of 25.1%, driven by newly secured agents and contributed to a significant improvement in profitability.

Hemas Logistics and Maritime sector recorded a revenue growth of 6.3% over last year with revenues of Rs.2.2 billion.




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