Hemas Holdings net profit for June quarter increased to Rs. 347m.

Net profit of Hemas Holdings for the June quarter increased 32.3 percent year-on-year to Rs. 347m. The Group recorded a consolidated revenue of Rs 6.3b, a year-on-year growth of 27.1 percent and earnings of Rs 347m, a year-on-year growth of 32.3 percent. Revenue growth was driven by Power, Healthcare and FMCG sectors recording growth levels of 52.3 percent, 22.1 percent and 13.8 percent.

FMCG, Leisure, Healthcare and Transportation sectors, which recorded a growth of 38.3 percent, 124.8 percent, 22.7 percent and 62.0 percent, were the key contributors to the earnings growth during the quarter.

The FMCG sector enjoyed a good first quarter posting a growth of 13.8 percent, to record a revenue of Rs. 1.8b. Sector revenues was driven by the growth in our hair care, skin care, personal wash and home care categories. Earnings grew by 38.3 percent to record Rs. 163m for the quarter, notwithstanding a depreciating rupee which contributed to an increase in raw material costs during the period.

"During the quarter the personal care portfolio strengthened its market position, with toothpaste, sanitary napkin and hair oil products increasing its market share," a spokesman for the Company said.

The Healthcare sector achieved a revenue growth of 22.1 percent to record Rs. 2.2b, driven by a successful quarter enjoyed by pharmaceutical distribution and hospitals businesses, giving rise to a growth in earnings of 22.7 percent to post Rs. 142m.

The pharmaceutical business saw its market share grow to 17.32 percent (Source: IMS) with a revenue growth of 20.8 percent.

"Efforts in striving to excel in supply chain excellence were rewarded with two of our agencies Ranbaxy Laboratories Ltd and Terumo Singapore (Pte) Ltd. winning the Best Supplier Awards at the SPC supplier convention 2012, held recently," the spokesman said.

"Hospitals business enjoyed a good quarter with both the hospitals recording the highest monthly revenue achieved since its inception. The growth in revenue was also strengthened by the success of our diagnostic network which enjoyed a growth in volumes during the quarter," he said.

Hemas Holdings CEO Hussein Esufally said "Our commitment to service excellence has been reinforced with the hospitals being awarded the certification in International Standard for Occupational Health and Safety (OHSAS 18001) becoming the first internationally accredited hospital chain in Sri Lanka on occupational health and safety management systems and our laboratory network achieving the prestigious ISO 15189 certification which is specifically aimed at standardising the quality and competence of clinical laboratories around the world. Construction work on our third hospital at Thalawathugoda commenced during the quarter and we expect the facility to be operational by mid next year".

"Our Leisure sector posted a revenue growth of 38.6 percent to record Rs. 289m, largely driven by the hotel sector. The sector profitability was impacted by a weakening rupee resulting in exchange losses on foreign currency borrowings, although the majority of which were unrealised translation losses."