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 the quarter.

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.