Hemas Group achieves 34.8% growth for Q1, 2016/17

Through continued focus on strategic priorities, profitable growth, improved organizational structure and innovation, the Hemas Group delivered strong revenues and earnings growth for the first quarter of financial year 2016/17, a media release by the company said.

Excerpts of Hemas Group CEO Steven Enderby's review:

Hemas Holdings PLC (HHL) and its subsidiaries achieved consolidated revenues of Rs. 9.9 bn, year-on-year (YoY) growth of 12.1%. Operating profit reached Rs. 907 mn and earnings Rs. 696 mn, a growth of 34.8% and 67.8% respectively.

We continued to generate solid performance with FMCG Bangladesh, Pharmaceutical Distribution, and our new shipping agency Evergreen all contributing well.

The Consumer business recorded a topline of Rs.4.2 bn for the first three months, a 10.2% YoY increase over the previous financial year. Operating profits were Rs.636 mn, 59.2% YoY growth, whilst earnings grew at 62.6% to stand at Rs. 509 mn. We continued to expand our position in key categories.

Bangladesh Consumer performed well contributing to overall Consumer business growth. Consolidated healthcare sector revenue for the first quarter stood at Rs.4.3 bn, a YoY increase of 17.6% whilst earnings grew at 13.5%.

Hospitals performance showed mixed results during the quarter.

J. L. Morison posted a YoY growth of 4.3% and earnings growth of 28.2% for the three months ended June 30, 2016.

Our Rx Pharma portfolio continued to do well. OTC and Consumer also contributed significantly towards overall revenue growth while the Agro division registered a decline in growth.

Leisure, travel and aviation segment recorded a revenue of Rs.775 mn, a 8.2% YoY growth for the three months under consideration.

Serendib Hotels posted a revenue growth of 4.8% with traditional markets performing slightly below expectations.

Travel and Aviation segment recorded a decline in revenues of 4.3%.

In April 2016, Hemas Maritime was appointed the exclusive shipping line agent of Evergreen Lines. Logistics and maritime revenues grew by 63.2% whilst earnings registered a growth of 118.6% over last year.