Hemas profit after tax up 25% to Rs. 258m

The Hemas Group recorded a turnover of Rs 3.5Bn and Profit after tax of Rs 258Mn in the quarter ended December 2007, reflecting a year on year growth of 26% and 25%.

Hemas Group CEO Husein Esufally said the growth in the Fast Moving Consumer Goods (FMCG) and Healthcare sectors were the main contributors to growth this quarter with bottom line growth of 20% in both sectors.

The operating profits for the period was Rs. 407Mn with an improvement in the margin from 9% in the last quarter, to 12%. Investment relief resulted in lower taxation liability for the group for the quarter under review boosting bottom line growth.

Growth in quarterly profits in the FMCG sector by 21% year on year to Rs. 125Mn on a turnover of Rs. 1.03Bn was achieved due to cost containment and phased price adjustments as indicated in the last review.

Our personal care portfolio did well to increase the market share during the quarter, although overall industry growth was dampened. The relocation of the manufacturing plant to Dankotuwa is progressing as planned and the new manufacturing facility will be operational from April this year.

Emphasis that has been placed on streamlining processes and systems was recognised with Hemas Manufacturing winning second place in the National Productivity Awards. Turnover in the Healthcare sector grew by 22% to Rs. 876Mn on a year-on-year basis.