Hemas ends 3Q on strong note | Daily News

Hemas ends 3Q on strong note

Hemas Group CEO  Kasturi C. Wilson
Hemas Group CEO Kasturi C. Wilson

Hemas Holdings PLC delivered a strong financial performance for the three months ended December 31, 2020 (3Q21), although the October lockdowns slowed some momentum in consumer business, while the group divested its leisure business during the quarter to focus on its core business segments going forward.

For the quarter, the group reported operating profit of Rs.2.1 billion, up 15.9 percent year-on-year (YoY) as it kept a close tab on costs and overheads such as selling and distribution and administrative expenses. The consumer juggernaut, which is also into hospitals and pharmaceuticals, reported revenues of Rs.17.7 billion for the quarter under review, little changed from Rs.17.6 billion a year ago.

The group shed its leisure business in December by selling its 55.6 percent stake in Serendib Hotel PLC to Eden Hotel Lanka PLC for Rs.792.9 million.

“Following this transaction, HHL has classified the leisure segment as a ‘discontinued operation’ and the said portfolio rationalisation is accretive to HHL’s earnings per share and return on equity going forward whilst enabling us to further our investments into core sectors,” Hemas Group CEO Kasturi C. Wilson said.

The group reported earnings of Rs.2.17 or 837.8 million for the quarter under review compared to Rs.1.63 a share or Rs.974.7 million in the corresponding period in 2019.

Investors cheered the group’s performance as Hemas share ended at Rs.89.00 on Friday, up Rs.1.80 or 2.06 percent.

The segment-wise information showed the group’s consumer business, which includes its broader personal and healthcare portfolio, stationary business under Atlas and over-the-counter business under Morison delivering revenues of Rs.7.9 billion for the three months compared to Rs.8.4 billion in the same period in 2019.

“The business was able to partially offset the impact on profitability stemming from the drop-in revenue through the realisation of cost savings supported by the adoption of world class lean manufacturing practices,” Wilson said.

This segment delivered an operating profit of Rs.1.5 billion compared to Rs.1.2 billion in the year ago period.

“During the quarter under review, our hospitals business encountered numerous challenges such as lower patient footfall and cost increases on account of the stringent adoption of COVID-19 related health and safety protocols.

This segment generated revenues of Rs.9.3 billion, up from Rs.7.9 billion in the corresponding period in 2019 and the operating profit rose to Rs.657.8 million from Rs.638.8 million.

This segment reported revenues and operating profits of Rs.458.1 million and Rs.139.9 million compared to Rs.738.8 million and Rs.112.6 million respectively in the same period in 2019.