Sri Lanka Hemas Group maritime business doubles profit in June quarter
Aug 11, 2016 11:57 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT – Sri Lanka’s Hemas Group said June 2016 quarter net profit shot up 68 percent to Rs696 million from a year ago, with its logistics and maritime business more than doubling earnings after clinching a new container handling agency.
Group sales rose 12 percent to Rs9.9 billion over the period, a stock exchange filing said. Diluted earnings per share were Rs1.22 up from Rs0.74 a year ago.
The bulk of Hemas Group earnings came from the mainstay fast moving consumer goods (FMCG) and healthcare businesses.
Hemas Group's FMCG net profit went up 62 percent to Rs510 million in the June 2016 quarter from the year before while healthcare profit was up 14 percent to Rs241 million.
The group's logistics and maritime business more than doubled net profit to Rs65 million. The leisure business suffered a loss during the ‘low season’ for tourist arrivals.
Despite a decrease in occupancy at Avani Bentota and Club Hotel Dolphin, Hemas Group's Serendib Hotels unit posted revenue growth of 4.8 percent, with traditional markets performing slightly below expectations, Hemas Chief Executive Steven Enderby said.
“Despite external pressures due to flooding, VAT uncertainty and increasing inflation resulting in weaker demand, we continued to generate solid performance with FMCG Bangladesh, Pharmaceutical Distribution and our new shipping agency Evergreen contributing well.”
Bangladesh Consumer performed well, contributing to overall consumer business growth, driven by extended reach attained through own distribution channels and strong marketing activities, he said.
Hospitals' performance showed mixed results during the quarter due to the introduction, and subsequent removal, of VAT for healthcare services, and different approaches to VAT introduction by various private healthcare operators creating market confusion, Enderby said.
In April 2016, Hemas Maritime was appointed as the exclusive shipping line agent of Evergreen Lines.
“We believe this will enable us to consolidate our position in the logistics and maritime sector,” Enderby said.
“Growth continued in our domestic logistics operations with warehouses operating at high levels of capacity underpinned by new customers for our distribution operation and higher levels of container handling activity. As a result, logistics and maritime revenues grew 63.2 percent while earnings registered a growth of 118.6 percent over last year,” he said.
(COLOMBO, August 11, 2016)