Financial Times

Hemas hopes presidential polls would be non-violent
Hemas Holdings, who posted Rs.307 million profit for the first half of this year recording an 18.7 percent growth compared to last year’s Rs.259 million for the corresponding period, hopes the November elections will not disrupts their sales operations. “We trust that the elections will not hinder our operations and that not too many days are lost,” Hussein Esufally, CEO Hemas Holdings said, adding that the company is hoping this year’s elections is non violent.
The group’s earnings went up by 30.3 percent to 336 million, from the corresponding period of last year’s Rs.258 million.

Esufally said the company is awaiting an improved profitability in the leisure sector by capitalising on the winter season arrivals. Low occupancies in resort hotels slowed down Hemas’ leisure sector growth which dropped to 44 percent during the first half of this year, compared to the 59 percent of last year’s corresponding period. He said the company is gearing for more mergers and acquisitions next year, but sustaining the high consumer demand will be a challenge due to the present market conditions.

This year’s profits of the company were boosted by the power project results, while there was improved profitability in fast moving consumer goods (FMCGs), healthcare and transportation. Esufally said the revenue growth of the FMCG sector was driven by major brands of the company and the total industry's growth was boosted by the rural demand of 10 percent.

Adult soaps, washing powder, personal wash, home and personal care, creams and toothpaste ranges of the company grew during the first half of 2005.
Hemas’ share price has seen a 212.5 percent appreciation since their initial public offering (IPO) three years ago. Ranked at the 11th position in market capitalisation, the average daily volume of the shares is 23,000.

Esufally said the company has invested for future healthcare sector growth by acquiring 25 percent in e-Channelling for Rs.43 million and becoming its largest shareholder, while planning for dedicated teams to handle surgical and over the counter products. “This is in a bid to transform the company into a fully fledged healthcare solutions provider,” he said.

The company has posted a healthy growth in both passenger travel and cargo movements with profits increasing by 51 percent. Hemas is also gearing for a joint venture with Hellmann Worldwide Logistics, an integrated logistics solutions provider by next year.

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