Hemas Holdings PLC continued its recovery from a challenging first six months with Q3 FY 19/20 Group revenue and operating profit broadly in line with Q3 FY18/19.
“On a quarter on quarter (Q-o-Q) basis, we grew strongly over Q2 FY19/20. Revenue grew by Rs. 2.3 billion, 14.9% over Q2 while operating profit and earnings rose by Rs.1.2billion and Rs.767.5millionn. This growth was driven by our consumer and healthcare businesses with strong performance by Atlas during the important back to school season,” said Group Chief Executive Officer, Hemas Holdings, Steven Enderby.
“On a year-to-date basis, the Group’s performance has been impacted by the aftermath of the Easter Sunday attacks during Q1 and Q2, recording a consolidated revenue of Rs.47 bilion for the 9 months ended December 31, 2019, 2.1% lower than last year.”
Operating profits for the first nine months of the financial year were Rs.2.6 billion, a year-on-year (YoY) decline of 39.9%. Group earnings stood at Rs.755.9 million for the nine months. Q3 indicated a significant recovery in profitability to Rs.974.7 million from the cumulative loss of Rs.218.8 million during Q1 and Q2.
The Group delivered an underlying revenue of Rs.46.6 billion and earnings of Rs.1.1 billion, 1.8% growth and 57.0% decline over last year.
“Our monthly Consumer revenues returned to prior year levels by the end of Q2 and we reported a Q-o-Q growth in revenue and operating profits of Rs.1.7 billion and Rs.538.3million respectively for the three months period in consideration.”
Due to the sharp slowdown in the first quarter, year-to-date consumer sector revenue stood at Rs.19.7 billion for the nine months ending December 31, 2019, indicating a YoY decline of 2.8%. Sector profits of Rs.1.8 billion witnessed a drop of 35.7% over last year due to higher spends in marketing and sales and distribution, to strengthen the Hemas brands.
Consolidated healthcare sector revenue for the first nine months of the year stood at Rs.22.5billion, a YoY increase of 9.8% whilst operating profit and earnings increased by 6.1% and 1.3%, due to steady recovery at Morison and Hemas Hospitals compared to the first half. Morison PLC, our pharmaceutical manufacturing arm achieved a revenue of Rs.2.7 billion and operating profit of Rs.187.million for the nine months ended December 31, 2019. Revenue growth was 7.2% with profitability flat against last year.
Hemas Leisure, Travel and Aviation business performance declined sharply with revenues and earnings down Rs.584.8 million and Rs.112 million compared to last year. A series of stringent cost control initiatives partially offset this fall in profitability. Hemas Logistics and Maritime recorded a revenue decrease of 15.6% over last year, with revenues of Rs.1.8 billion.
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