Hemas Holdings PLC (HHL) delivered resilient results in the first six months of the financial year 2023/24 to post a cumulative Group revenue of Rs. 59.0 billion, a 13.5 per cent growth over previous year.
Amidst the increasing strain on operating expenses, the Group’s operating profit and earnings for the period experienced a marginal growth of 4.1 percent and 3.7 percent, reaching Rs. 4.9 billion and Rs. 2.3 billion, respectively. During the quarter, the Group achieved a 10.0 percent growth in revenue, posting Rs. 29.8 billion for the quarter, with operating profits and earnings for the quarter increasing to Rs. 2.8 billion and Rs. 1.2 billion, respectively.
“Despite the Government’s efforts to provide essential food items to low-income communities at subsidised rates, inflation in Bangladesh persisted, exceeding 9%, and disproportionately impacting the underprivileged communities,” said Group Chief Executive Officer Kasturi C. Wilson
The cumulative revenue reported for the Consumer Brands Sector witnessed a growth of 19.9 per cent to reach Rs. 22.6 billion while the operating profits reported a growth of 37.0 per cent due to reduced raw material prices, improved productivity and stable exchange rates. In line with the growth in operating profits and lower finance costs, earnings for the period witnessed a growth of 74.9% to reach Rs. 2.0 billion. The Sector reported a revenue of Rs.11.5 billion for the quarter, a growth of 13.9 per cent over last year driven by the performance of both the Home and Personal care and Learning Segments.
The cumulative revenue for the Sector increased by 10.4 per cent to reach Rs. 35.6 billion driven by the Pharmaceutical Businesses of the Group. While the sector’s operating profits of Rs 2.7 billion increased by 6.3 per cent in line with revenue growth, this upward momentum was not translated into earnings, primarily due to escalating finance costs related to funding working capital in the Pharmaceutical Businesses.
The Sector posted revenue of Rs. 17.9 billion for the quarter, a growth of 8.4% over last year, while the operating profits increased by 16.0% to Rs. 1.6 billion. However, the benefit was negated under heightened finance costs, to report an earnings growth of 6.0 per cent.
The Maritime Sector continued to face challenges as both import and export activities to and from the country encountered the effects of a global economic slowdown. Stemming from lower base from the previous year, the Port of Colombo observed a notable upturn, with transhipment and total throughput volumes registering growth of 9.5 per cent and 7.7 per cent respectively.