Sri Lankaâ€™s Hemas group June net up 68-pct
ECONOMYNEXT – Hemas Holdings group said June 2015 quarter net profit shot up 68.2 percent to 415 million rupees from a year ago, helped by strong growth in its fast moving consumer goods business in Bangladesh although transportation sector earnings fell.
Hemas group sales in the June 2015 rose 23 percent to 8.8 billion rupees from the year before, a stock exchange filing said.
Diluted June quarter earnings per share of the group, in which several foreign funds took stakes in its recent rights issues, were 74 cents.
Franklin Templeton Investment Funds has taken 9.95 percent, Templeton Emerging Markets 2.61 percent, Wasatch Frontier Emerging Small Countries Fund 0.75 percent, Grandeur Peak Emerging Markets Opportunities Fund 0.54 percent, Alliance Bernstein 0.66 percent and Matthews Emerging Asia Fund 0.48 percent.
First State Indian Subcontinent raised its stake to 2.09 percent from 1.89 percent.
Chief Executive Steven Enderby said group FMCG sector sales rose 33 percent to 3.8 billion rupees, led by personal wash, personal care, feminine hygiene and home care brands, which saw growth in general trade as well as in supermarkets.
“Our efforts in building our own distribution network in Bangladesh helped double the topline growth in that market for the period under review,” he said.
“This growth has fed through to the bottom line with sector earnings up by 35.2 percent.”
Enderby said Hemas group pharmaceutical distribution business sales grew 13.3% despite the “challenging industry conditions which witnessed a market decline by 0.6 percent.”
Hemas maintained market leadership position with a share of 22 percent with sector growth augmented by the “healthy performance of our hospitals, which posted a topline growth of 30.3 percent,” Enderby said.
“Our growing diagnostic network made a notable contribution towards the segment results and both our hospitals at Wattala and Thalawathugoda achieved strong growth.”
Hemas group transportation sector sales grew 19.4 percent to 399 million rupees although earnings fell by 15.5 percent to 83 million rupees.
Revenue growth was mainly due to the strong performance of the logistics sector whose sales grew 38.7 percent as the group secured new projects, its warehouses operating at full capacity and growth in the car carrier business.
But the travel agency business saw a fall in outbound travel. (Colombo/August 13 2015)