Strong quarter performance by Atlas boosts Hemas’ profit
View(s):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, Hemas grew strongly over Q2 FY19/20. Revenue grew by Rs.2.3 billion, 14.9 per cent over Q2 while operating profit and earnings rose by Rs.1.2 billion and Rs.767.5 million. This growth was driven by the company’s Consumer and Healthcare businesses with strong performance by Atlas during the important back to school season, the company said in a media release
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 billion for the 9-months ending December, 2.1 per cent 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 per cent. 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,” it said.
The group delivered an underlying revenue of Rs.46.6 billion and earnings of Rs.1.1 billion, 1.8 per cent growth and 57 per cent decline over last year, excluding the negative impact of Rs.230 million from N*able, its technology business sold in Q2 FY20 and Hemas Southern Hospitals which it exited in Q3 FY19.
Consolidated healthcare sector revenue for the first nine months of the year stood at Rs.22.5 billion, a YoY increase of 9.8 per cent whilst operating profit and earnings increased by 6.1 per cent and 1.3 per cent, due to steady recovery at Morison and Hemas Hospitals compared to the first half.
Hemas Leisure, Travel and Aviation business performance declined sharply with revenues and earnings down Rs.584.8 million and Rs.112.5 million compared to last year. A series of stringent cost control initiatives partially offset this fall in profitability. Serendib Group of Hotels recorded revenue of Rs.995.3 million, a 51.2 per cent decline over last year with an average occupancy of 73 per cent across its hotels during the quarter, 13 per cent below the occupancy achieved in the same quarter last year. Rates across all properties reduced during the period under review, in order to boost occupancy, which led to a drop in profitability during the peak season.
Hemas Logistics and Maritime recorded a revenue decrease of 15.6 per cent over last year, with revenues of Rs.1.8 billion.