Hemas records 58% growth

For the period under review, the Company witnessed strong growth with most businesses delivering strong results.

Group Revenue registered Rs 26,098 million, an increase of 21.2% over the corresponding period of the previous year.

In terms of consolidated profits, the Group registered a Profit after Tax of Rs 1,934 million, a growth of 53.3%. The Group posted a growth of 42.3% in Group Earnings to close at Rs. 1,658 million. The Groups' operating profits grew 36.4% to post Rs. 2,434 million from Rs. 1,784 million, while operating cash flows increased to Rs. 2,143 million from Rs. 1,508 million. The increased profit margins helped drive the return on equity to 14.5% from 12.0%.

Our FMCG business enjoyed a successful year with revenue growing by 14.5% and profits by 28.8%, to close at Rs 7.7 billion and Rs 745 million. Despite challenges, the business improved its market standing in overall terms. In Personal care, growth was driven by strong performances in Baby, Oral, Hair and Feminine hygiene categories Our Healthcare sector performed exceptionally well during the year with a revenue growth of 20.0% and profit growth of 53.8% to close at Rs 9.0 billion and Rs 493 million.

Our Pharmaceuticals business was the largest contributor to Group revenue during the year. Hemas Pharmaceuticals strengthened its market leadership position in pharmaceuticals distribution with a share of 17.9% (source: IMS). Our recent addition to the hospital portfolio, a 55-bed state-of-the-art facility at Thalawathugoda was completed in May 2013.

Our Leisure sector posted a revenue growth of 38.6% and a profit growth of 275.4% for the year under review. The sector closed the year with revenues of Rs 1.6 billion and a profit of Rs 464 million. Average occupancy across our hotel portfolio was above 75%, and Club Hotel Dolphin and Avani Bentota in particular performed exceptionally well.