Hemas reports losses in 6-mth review
View(s):Hemas Holdings PLC witnessed a recovery in Q2 with group revenue up by 19.2 per cent, over Q1 FY20 and operating profit and earnings growing by Rs.662.7 million and Rs.633.1 million.
The growth was driven by an improvement in the group’s Consumer and Healthcare businesses and the normal positive seasonal trend at Atlas, Group CEO Steven Enderby is quoted as saying in his CEO’s review in the report released to the public.
The group recorded consolidated revenue of Rs.28.9 billion for the 6-months ended September 30, 3.6 per cent lower than last year. Operating profits for the first half of the financial year were Rs.701.5 million, a Year-on-Year (YoY) decline of 70.8 per cent in comparison to previous year. The group reported a loss of Rs.218.8 million for the 6 months, he said.
During the quarter, both the Consumer businesses witnessed a steady recovery following subdued performance in the first quarter amid a general economic slowdown and the adverse impact of Easter Sunday attacks. Monthly revenues from this segment returned to prior year levels by the end of Q2, reporting a quarter on quarter growth in operating profit and earnings of Rs.598.6 million and Rs.346.4 million respectively for the three months period in consideration.
Consolidated healthcare sector revenue for the first half of the year stood at Rs.14.5 billion, a YoY increase of 8.3 per cent whilst operating profit and earnings fell by 3.8 per cent and 8.5 per cent, due to declines at Morison and Hemas Hospitals during the first quarter.
Hemas pharmaceutical distribution operation registered satisfactory performance with the price increase on price-controlled pharmaceuticals becoming effective in May. Hemas Hospitals achieved an overall average occupancy of 54 per cent, with profitability down on last year.
Morison PLC, the pharmaceutical manufacturing arm, achieved revenue of Rs.1.3 billion and operating profit of Rs.101.2 million for the six months ended September 30, a growth of 3.3 per cent and a decline of 8.9 per cent respectively. The sector also recorded increased finance costs on account of increased working capital financing at pharmaceutical distribution segment and the expenditure on the new Morison manufacturing plant.
Hemas Leisure, Travel and Aviation business performance declined sharply with revenues down Rs.399.5 million compared to last year. Serendib Group of Hotels recorded revenue of Rs.535.4 million, a 31.8 per cent decline over last year with an average occupancy of 56 per cent across its hotels during the quarter, 21 per cent below the occupancy achieved in the same quarter last year.