Hemas Holdings PLC (HHL) and its subsidiaries achieved consolidated revenue of Rs.11.4 billion, a year-on-year (YoY) growth of 14.9%, whilst earnings were stable at Rs.694.2 million.
“Our healthcare sector was the main contributor to growth during thequarter. Operating profit reached Rs. 865.7 million a de-growth of 4.6%.
The key factors that influenced the decline in profitability were subdued consumer spending resulting from increased inflation and VAT, flooding and landslides in Sri Lanka and exchange rate depreciation.
Chief Executive Officer, Hemas Holdings, Steven Enderby. “Our consumer business recorded revenue of Rs.4.2 bn for the first three months ending June 30, 2017, a decline of 1.5% YoY. Operating profits were Rs.526.4 mn 17.3% YoY de-growth, whilst PAT Rs.425.3 mn, a fall of 17.1%.”
“In addition, headwinds faced in our Bangladesh operation and losses incurred at Leisure, Travel and Aviation (LTA) segment also impacted our profitability,” he said.
Consolidated healthcare sector revenue for the first three months under review stood at Rs.5.1 Bn, a YoY increase of 18.7% whilst operating profit and PAT grew at 22.4% and 54.3%.
“Hemas pharmaceutical distribution operation registered strong revenue growth increasing its market leadership position. However, managing the impact of price regulation and devaluations in the wake of depreciation of the rupee was a key operational challenge.”
J. L. Morison posted revenue of Rs.954.7 million and PAT of Rs.118.7 mn for the three months ended June 30, 2017. JLM’s underlying revenue and earnings growth, excluding Agro, which we exited during the latter part of FY17, was 7.6% and 19.5% respectively.
Our Leisure, Travel and Aviation business recorded total revenue of Rs. 682.1 million, reflecting a decline of 12.1% YoY for the three months under consideration.
Serendib Hotels reported a 2.5% fall in revenue due to decline in average room rates and occupancies across the group.
The fall in segmental profitability during the quarter was compounded by losses at Anantara Peace Haven Tangalle Resort.
Hemas Logistics and Maritime recorded revenue growth of 80.8% over last year with revenues of Rs.622.5Mn. This growth has been driven by both our agencies, Evergreen and Far Shipping.
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