Hemas Group revenue for the first nine months of FY 2016/17, rose by 12.9% to achieve Rs.31.9 bn compared with the same period a year ago, operating profit reached Rs.3.3 bn and earnings Rs.2.4 bn, growth of 18.3% and 26.1% respectively.
However, during the period under review, we have seen increasingly challenging operating conditions across most sectors. Increasing VAT rates and the introduction of VAT at hospitals, new pharmaceutical pricing regulation and increasing inflation have impacted Q3 profitability.
“In addition, we have seen higher sales and distribution costs incurred in Bangladesh as we grow our operations there. Further, we have experienced continued losses at our new hotel, Anantara Peace Haven Resort in Tangalle.
As a result, Q3 saw revenue growth of 14% and PAT growth of 1.9% over the corresponding period last year,” Group Chief Executive Officer, Steven Enderby said.
“We continue our efforts to enhance and develop the luxury travel market in Sri Lanka through our close relationship with Minor Group.”
During the first nine months of the year under review, the Group’s consumer sector delivered revenues of Rs.12.3 bn, a 10.1% increase over the previous financial year. Operating profits were Rs.1.7 bn, 22.9% YoY growth, whilst earnings grew at 29.8% to stand at Rs.1.4 bn.
Consolidated healthcare sector revenue stood at Rs.13.9 bn, a growth of 17.0%. Operating profit and earnings grew at 14.6% and 13.5%, to achieve Rs.1.5 bn and Rs.964 mn respectively. During the last quarter, healthcare sector experienced challenges arising from new pharmaceutical price
regulation and the introduction of VAT on specified hospital services.
J. L. Morison posted a YoY growth of 6.0% and operating profit growth of 1.3% for the nine months ended December 31, 2016. Our Rx Pharma portfolio continued to do well benefiting from new product launches.
“Our Leisure, Travel and Aviation (LTA) business recorded total revenue of Rs.2.9 bn, reflecting 5.4% YoY growth for the first nine months. Hotels sector recorded a revenue growth of 2.8% over last year recording a topline of Rs.1.2 bn.”
Hemas Logistics and Maritime recorded a growth of 95.5% over last year recording a topline of Rs.1.3 bn. This growth has been driven by our new maritime agency, Evergreen. The acquisition of this agency gives us a stronger position in the logistics and maritime space.
0 comments: