FMCG, healthcare businesses bolster Sri Lanka’s Hemas profit

ECONOMYNEXT – Sri Lanka’s Hemas Holdings PLC said net profit more than doubled in the December 2015 quarter from a year ago bolstered by its fast moving consumer goods (FMCG) and healthcare businesses and lower commodity prices.

Net profit shot up 220 percent to 859 million rupees in the December 2015 quarter from the year before when earnings were impacted by a 185 million rupee loss from discontinued operations.

Sales rose 20 percent to almost 9.9 billion rupees in the December 2015 quarter from the previous year, interim results filed with the stock exchange showed.

Diluted earnings per share for the quarter were 1.53 rupees.

The accounts showed December 2015 quarter FMCG net profit rose 88 percent to 452 million rupees from the year before while that from healthcare went up 37 percent to 260 million rupees.

The leisure business of Hemas Holdings reported a quarterly loss while transportation profits fell.

EPS for the nine months ending 31 December 2015 were 3.39 rupees with a 65 percent increase in net profit to 1.9 billion rupees on an almost 20 percent rise in sales to 28.3 billion rupees.

Hemas Chief Executive Officer Steven Enderby said that eliminating the one off transactions in the preceding year and the additional interest income of 196 million rupees earned from investing the proceeds of the rights issue, underlying operating profit and earnings maintained a healthy growth of 30.8 percent and 30.2,

In the FMCG sector, excluding the one-off capital gains recorded previous year, underlying earnings growth was 49.3 percent.

“This performance has been driven by our Bangladesh operation maintaining excellent revenue and profit growth, strong sales across all our major brands in the domestic market and relatively weak commodity prices for key raw material inputs,” Enderby said.