Hemas net earnings top Rs 2.4 billion

The company posted consolidated Net Earnings of Rs 2,409 million, a 45.2% year-on-year growth and Operating Profits of Rs 3,379 million, a growth of 38.6%. This was largely on account of strong performance of Healthcare, FMCG and Transportation sectors.

Operating profits were positively impacted by the capital gain and fair value gain relating to our Tangalle land and negatively impacted by an impairment at our Heladhanavi thermal plant. After adjusting for these one-off items, Group Operating profits showed a healthy growth of 19.0%.

Our FMCG business recorded a revenue growth of 24.1% while operating profits grew by 26.0%. The business re-launched many of its key brands accounting for 80% of its business revenue with significant enhancement to product quality.

The performance of our Healthcare sector was boosted by our pharmaceutical distribution business which reinforced its market leader position, increasing its share of the private market to 21.0% (IMS). Revenue grew by 18.0%, despite sluggish industry growth which stood at 1.32% for 2013 (Source: IMS). The company strengthened its position in this space through the acquisition of a 90% stake in J.L. Morisons which posted an earnings growth of 50.6% despite a 13.3% drop in topline (due to the loss of two consumer distribution agencies). Our third hospital at Thalawathugoda, a 55-bed, multi-specialty facility, launched operations in June 2013.