Hemas Holdings PLC (HHL) delivered yet another strong quarter amidst challenging operating environment conditions with key businesses gaining momentum in all areas.
“All sectors witnessed a steady growth in comparison to the lower operating results in the base quarter, which was impacted by the island wide lockdown in 2020. All key entities reached pre-COVID performance levels this quarter,” said Group Chief Executive Officer, Kasturi C. Wilson.
The Group recorded a consolidated revenue of Rs.16.4 billion for the quarter ended June 30, 2021, an increase of 26.7 per cent over last year. HHL achieved a Group operating profit of 1.1 billion, a growth of 77.5 percent over the last year same quarter, whilst the Group earnings of Rs.637.3 million is an increase of Rs.367.9 million over the previous year. Group earnings excluding the remaining leisure assets stood at Rs.720.4 million, a growth of 63.6% over last year.”
The Consumer Brands sector recorded a revenue of Rs.5.4 billion and earnings of Rs.230.1 million as a result of its continued focus in increasing distribution reach and brand excellence.
During the quarter, HPC Sri Lanka delivered a robust volume-led growth while HPC International showed a resilient performance on the back of an improved recovery in Bangladesh during the first two months of the quarter.
Atlas witnessed a year-on-year growth with improved sales across all key categories including books and pens.
Hemas Healthcare Sector posted a revenue of Rs.10.5 billion whilst first quarter operating profits and earnings stood at Rs.835.1 million and Rs.621.3 million respectively.
Pharmaceutical businesses delivered a stable revenue growth during the quarter. However, steep exchange rate depreciation continues to impose pressure on profit margins across both segments impacting the overall sector profitability. “Our new oral solid dosage manufacturing plant in Sri Lanka, is expected to commence production at the end of the second quarter.”
Both Thalawathugoda and Wattala hospitals witnessed an average YOY occupancy growth of 10% reporting 58% and 44% occupancy respectively.
The Mobility Sector reported a revenue of Rs.586.6 million whilst operating profits and earnings stood at Rs.241.7 million and Rs.130.3 million respectively.
Despite a 24.0% increase in the volume of TEUs handled by the Port of Colombo over last year’s first quarter, Maritime Business continued to face challenges with vessels opting to bypass the port of Colombo to recover the schedules.
The logistics business of the Group, Spectra, onboarded new clients to its Distribution Center enabling high utilisation throughout the quarter, and leased a new facility to cater to clients with bulk storage requirements.
Aviation business witnessed a year-on-year improvement due to improved conditions of the operating environment.