Hemas reasserts its agility with strong performance | Sunday Observer
Financial Year 2020-21 – First nine months performance

Hemas reasserts its agility with strong performance

21 February, 2021
Group CEO Kasthuri C. Wilson
Group CEO Kasthuri C. Wilson

Hemas Holdings PLC (HHL) delivered another strong quarter of results driven by its commitment to serve customers in the core segments, Home and Personal Care (HPC) and Healthcare.

Continued focus on working capital efficiencies and cost rationalisation measures strengthened Group’s liquidity position which was also endorsed by Fitch ratings with the reaffirmation of “AAA (lka)- Outlook Stable” rating criteria for the Group following the recalibration of its Sri Lankan National Rating scale. 

HHL posted an underlying Group revenue of Rs. 17.7 billion for the quarter ended December 31, 2020, an increase of 3.3 per cent over the corresponding period last year, after adjusting for the disposal of the Leisure segment as a ‘discontinued operation’, except for Joint Venture investments held by the Group. Underlying Group operating profit for the quarter under review at Rs. 2.1 billion is a growth of 17.5 per cent over Rs.1.8 billion recorded last year while the underlying Group earnings of Rs. 1.3 billion is an increase of 36.5 percent over last year. 

While the quarter-on-quarter growth momentum slowed down during Q3 in the backdrop of the second wave of Covid-19 in the Western Province, the Group reasserted its agility with a revenue growth of 2.3 percent and an operating profit growth of 3.0 percent over the preceding quarter. 

The Group recorded a cumulative underlying revenue of Rs.47.9 billion leading up to the first nine months of FY 2020-21, indicating an 8.0 per cent growth against the corresponding period last year. Similarly, the cumulative underlying Group operating profit of Rs. 4.7 billion for the nine-month period is a notable year on year increase of 61.0 per cent over Rs.2.9 billion recorded last year despite the challenges encountered in the macro environment and the intensity of competitive landscape.

The Consumer sector reported a revenue of Rs.7.9 billion during the quarter, a decline of 5.5 per cent over corresponding quarter last year. However, operating profit for the quarter saw a year-on-year increase of 31.6 per cent, driven by both HPC and stationery businesses.  The Healthcare sector recorded a revenue for the quarter amounting to Rs.9.3 billion against Rs.8.0 billion recorded over the corresponding period last year.  

The Group’s Pharmaceutical segment, Morison and Pharmaceutical distribution business experienced steady year-on-year performance across most of the key therapeutic segments, while the prescription driven antibiotics segment witnessed a slowdown. 

Mobility sector revenue for the quarter under review at Rs. 458.1 million is a decline of 38.0 percent over the corresponding period last year.