Hemas operating profit up 38.2%
Hemas Group ended the third quarter of 2013-14 on a positive note
with a revenue growth of 22.5% to reach Rs 23.7 billion and an operating
profit growth of 38.2% to post Rs 2.2 billion. Revenue growth was
primarily driven by Healthcare, FMCG and Transportation sectors which
grew by 32.4%, 26.8% and 44.6%, while increase in earnings was led by
Healthcare, FMCG and power sectors which posted a growth of 23.2%, 6.7%
and 29.6%.

Chairman and CEO, Hemas Holdings, Hussein Esufally |
The underlying earnings recorded a growth of 18.5% after adjustments
for the performance of the Thalawathugoda hospital, closure for
refurbishment of Club Hotel Dolphin and Hotel Sigiriya, and the capital
gains arising from the transfer of Peace Haven land to a joint-venture
with Minor International.
The FMCG sector recorded a revenue of Rs 7.2 billion, a 26.8% growth
compared to the previous nine months, while sector operating profits
grew 23.8% to Rs. 660 million. The sector's personal care and personal
wash categories were the main contributors to growth.
The sector is poised for an eventful quarter, with an active program
of re-staging key brands to enhance appeal among consumers.
The Healthcare sector recorded a revenue of Rs 8.8 billion, a growth
of 32.4% over the corresponding period of last year, while sector
operating profit increased by 25.1% to reach Rs. 741 million.
It was largely driven by the positive performance of the
Pharmaceutical distribution business with the new hospital at
Thalawathugoda. The Pharmaceuticals business posted a 18.9% growth in
revenue, strengthening its market leadership position and increasing its
market share to 19.2% (Source: IMS).
The company recently finalised the purchase of a modern 35,000 square
foot warehouse on 180 perches of land in Elakanda, Wattala. Located
close to the seaport and airport, the warehouse is equipped with all
facilities for regulatory compliance including cold storage and
temperature controlled environments.
This will further enhance capacity to accommodate future growth. The
hospitals at Wattala and Galle experienced a marginal improvement in top
line and bottom-line. The new hospital at Thalawathugoda continued to
record a steady pick-up in volumes driven by the local community and
strengthened by the laboratory and theatre operations at the hospital.
The Leisure sector recorded a revenue of Rs. 891 million and an
operating profit of Rs. 53 million for the nine months a 17.7%, and
78.8% decline.
This was primarily due to the closure of Hotel Sigiriya and Club
Hotel Dolphin for refurbishment. Club Hotel Dolphin was reopened on
November 1, 2013 after extensive refurbishment and has since recorded
encouraging occupancy levels of over 80%, while Hotel Sigiriya was
reopened earlier this year. During the quarter all four hotels were
awarded the 'Travelife Gold' certification.
'Travelife Gold' is an international certification developed by the
travel industry to recognise the highest level of commitment of a travel
partner towards sustainable travel practices.
Avani Kalutara was bestowed the 'Top Hotel 2014' by Holiday Check, a
popular e-travel site. With the availability of the Group's full
inventory and encouraging forward bookings, the Group is well positioned
to compete with the new properties which are expected to enter the
market.
The Transportation sector posted a revenue of Rs. 1.08 billion and an
operating profit of Rs 335 million, a growth of 44.6% and 25.1%.
The performance of the sector was largely driven by the aviation,
transshipment and the logistics segments. The new integrated logistics
arm, Hemas Logistics opened its first container yard at Welisara in
November. |