Hemas to further expand healthcare, personal care segments
View(s):Hemas Holdings, which raised Rs. 4.1 billion of new capital through its recent rights issue to finance expansion plans in its wellness business, will focus on expanding the healthcare and personal care segments of the business, officials said. “We raised the ‘rights’ especially for expansion in our Bangladeshi market segment,” an official said.
Hemas, releasing its 2014/15 annual results superior growth, says that personal care has delivered 23.1 per cent growth in sales and 24.6 per cent growth in profitability. “We have delivered strong performance with multiple brands including, our multi award winning beauty soap Velvet, good growth in baby care with Baby Cheramy maintaining its strong leadership position, Clogard and Diva performing well and our new Fems range gaining market share,” Steven Enderby, CEO Hemas has said in his annual statement. He has added that in the year under review Hemas established its own sales and distribution network in Bangladesh enhancing their market coverage and providing the company with more detailed insight in consumer behaviour.
For 2014/15, Hemas Holdings PLC recorded consolidated revenues of Rs 32.5 billion, a 19.2 per cent growth over last year, while operating profits and earnings were Rs 3.4 billion and Rs. 1.9 billion, respectively, a decline of 3.2 per cent and 20 per cent. Excluding the discontinued Power sector operations and one-off items recognised the previous year, the group recorded an underlying growth of 27.5 per cent in operating profit to Rs. 3.1 billion, while the profits attributable to the parent grew by 23 per cent to Rs 1.9 billion.
“Our Healthcare sector performed well recording a revenue growth of 15.4 per cent and a profit growth of 41.9 per cent for the period under review. In pharmaceuticals we have seen a topline growth of 9.8 per cent. Our pharmaceutical manufacturing subsidiary JLMorison recorded strong growth in both revenues and profitability of 14.7 per cent and 16.2 per cent, respectively,” Mr. Enderby has said, adding that their hospitals have performed well in 2014/15 with an overall growth in revenue of 34.9 per cent. He has added that all three hospitals have grown, with Wattala building its reputation in orthopaedics, Thalawatugoda developing its patient base and Galle growing well even with new competition emerging.
Hemas Hotel revenues grew by 23.3 per cent over last year and profits by 42.9 per cent. According to Mr. Enderby these growth levels have in part been driven by lower room inventory in 2013/14 due to the hotel closure for refurbishment. “Performance for the period was impacted by the conflict in Ukraine and the significant depreciation of the Euro. The development of our two new properties Anantara Peace Haven Tangalle and Anantara Kalutara continue and we look forward to the opening of both these properties in 2015/16.”
The Transportation Sector continued to generate strong growth during the year posting revenue growth of 16.1 per cent led by maritime and logistic segments. “To signify the continued growth momentum in the maritime segment Hemas Transportation entered into a joint venture with Far Shipping Singapore to consolidate its presence in the region. Our Logistics segment performed well experiencing full capacity at our warehousing complex, while our container yard was successful in securing new clients,” Mr. Enderby has further added.