Sri Lanka’s Hemas Holdings net up 54-pct in March
ECONOMYNEXT – Profits at Sri Lanka’s Hemas Holdings Plc, which has interests in consumer goods, healthcare, logistics and leisure, rose 45 percent in the March 2017 quarter from a year earlier, helped by gains in its unspecified ‘other’ sector.
The group reported earnings of 1.89 rupees per quarter. In the year to March, it reported earnings of 6.19 rupees on total profits of 3.4 billion rupees, which grew 31 percent.
Revenues grew 18.4 percent to 11.4 billion rupees and cost of sales grew 15.7 percent to 6.7 billion rupees, with gross profits up 22 percent to 4.6 billion rupees.
"Overall, the Group has grown strongly over the last year; however, a multitude of factors such as increasing VAT rates, the introduction of VAT at hospitals, new pharmaceutical pricing regulations and increasing inflation have impacted profitability during the second half of the year," Chief Executive Steven Enderby told shareholders. "Despite this, we have seen limited signs of recovery during Q4."
After-tax profits in the fast moving consumer goods segment fell to 301 million rupees from 385 million rupees a year earlier.
Healthcare profits rose to 437 million rupees from 344 million rupees. Enderby said pharma margins were down after price controls, but volumes were up. Hospitals were also making ‘standalone profits’ by the fourth quarter.
Leisure fell to 157 million rupees from 234 million rupees amid the closure of airports and a loss at Anantara Peace Haven Resorts in Tangalle in its first full year of operations.
Logistics doubled its revenues after getting the agency for Evergreen. "The acquisition of this agency gives us a stronger position in the logistics and maritime space," Enderby said.
"During the year, the logistics arm of Hemas showed improved results, mainly driven by 3PL operations. Hemas is further strengthening its presence in the logistics space by constructing a new state-of-the-art Logistics Park to consolidate warehousing, improve capacity and provide a range of new services to clients."
The group will invest 5.2 million dollars through a joint venture with GAC.
Profits were boosted by a 196 million rupee profit in the unspecified ‘other’ sector, which showed a loss of 130 million rupees last year. (Colombo/May18/2017)