Health care sector drives Hemas profit growth
Hemas achieved a revenue of Rs. 2.5 Billion and a profit of Rs. 217
Million, for the quarter ended June 30, 2006, reflecting a top-line
growth of 12.3% and a bottom-line growth of 14.8% as against the
corresponding period of the last financial year. Profit growth was
mainly driven by the Healthcare Sector, which grew by 41%, and the turn
around of the Leisure Sector, which posted a profit of Rs. 6 Million for
FMCG turnover recorded a marginal increase whilst profits have
declined by 6% due to lower margins, mainly as a result of higher input
costs on account of a stronger US dollar.
Whilst most key Brands have grown, high levels of competition and
increasing inflationary pressures make for a challenging year ahead.
The sector has progressed its plans to set up dedicated
Foods/Homecare and International business divisions and the necessary
operating structure are mostly in place. The healthcare sector posted a
16% growth in turnover and a 41% growth in profits.
High profit growth was a result of successfully reducing the losses
incurred in the own branding business, which is in the process of being
scaled down. An important milestone for the healthcare sector was the
signing of the joint venture agreement with Columbia Asia to construct
and operate a 100 bed general hospital.