Hemas Holdings posts Rs 17.4 bn quarterly revenue | Daily News

Hemas Holdings posts Rs 17.4 bn quarterly revenue

Group CEO,  Kasturi C. Wilson
Group CEO, Kasturi C. Wilson

Hemas Holdings PLC (HHL) posted a Group revenue of Rs.17.4 billion for the quarter ended September 30, 2020, an increase of 11% over the corresponding period last year.

Group operating profit for the quarter under review at Rs.2 billion is a growth of 188% over Rs.0.7 billion recorded last year. Year on year increase in earnings amounted to Rs.1.1 billion to reach Rs.1.3 billion for the quarter. Cumulative revenue of Rs.30.4 billion recorded during the first half of financial year 2020/21 is a growth of 5% against the same period last year.

Similarly, the Group operating profit of Rs.2.4 billion for the first six-month period is a notable year on year increase over Rs.0.7 billion recorded last year. “Growth in profitability during the quarter and first six months under review against the corresponding periods last year is reflective of the strong rebound in key sectors, Consumer and Healthcare which were impacted in the aftermath of Easter Sunday attacks,” Group Chief Executive Officer, Kasturi C. Wilson said.

The quarter under review also witnessed a strong recovery from the subdued performance of the preceding quarter with a revenue growth of 34% and an operating profit growth of Rs.1.6 billion.

The Consumer sector reported a revenue of Rs.7.5 billion during the quarter, a growth of 11% over corresponding quarter last year. The cumulative revenue for the first six months remained flat at Rs.11.3 billion compared to last year, with the prolonged closure of schools having an impact on the sales of our school and office stationery business, Atlas.

“Operating profit for the quarter at Rs.1.1 billion with a year on year increase of 85% was driven by the aforementioned increase in revenues, and more importantly through rigorous cost containment initiatives supported by realization of supply chain and process efficiencies.”

Over the Counter (OTC) segment of Morison experienced a growth in demand for its own brands against the corresponding period last year, as consumers invested more in preventative healthcare, contributing positively towards the performance of the sector.

Healthcare sector recorded a revenue for the quarter amounting to Rs.9.3 billion against Rs.7.7 billion, which is an increase of 22%. Operating profits for the quarter recorded a year on year increase of 60% to deliver Rs.936 million. Opening of the new manufacturing plant and the research facility in Homagama marked a significant milestone for Morison in positioning itself to grow in-line with the Government’s policy of promoting domestic manufacturing.

Mobility sector revenue for the quarter under review at Rs. 503 million is a decline of 28% over the corresponding period last year, and the operating profit for the quarter at Rs.212 million is an increase of Rs. 150 million against the previous year.

During the quarter under review Leisure segment contained its operating losses to Rs.144 million against an operating loss of Rs.212 million recorded in the corresponding period last year.