Hemas Holdings PLC (Hemas) said its profit growth of 61% to Rs 291.5 million for the June 2010 quarter was possible due to power and pharmaceuticals sector growth and reduced losses at its hospitals.
“Revenue growth was driven by the pharmaceuticals business, hospitals and leisure,” Husein Esufally CEO Hemas has said in his review, adding that the Fast Moving Consumer sector revenues grew by 6% during the quarter to report a turnover of Rs 1.4 billion. “We anticipate a higher growth in sales volumes in the coming quarters. The net profits in this sector declined 5% to Rs 166 million, mainly due to increased marketing investments,” he has said.
Analysts said that the company has approximately 16.5% market share in the pharmaceutical business which is supported by a large sales distribution network in the country, servicing over 2000 pharmacists through 24 distribution channels. This business, which showed a 28% growth in revenues during the last quarter, also has a Contract Research Organization (CRO) established by the Hemas group in collaboration with the Clinical Trials Unit (CTU), and also has a medical education unit. Mr. Esufally has said that Hemas is aggressively expanding its OTC market.
During the June quarter, Hemas saw its hospital revenues increase by 55% year-on-year with strong growth in revenue generators such as laboratory, radiology, surgery and in-patient services.
Mr. Esufally has said that the leisure sector revenues have increased by 68% for the quarter under review on the back of the tourism boom in the post-war Sri Lanka. “We have embarked on an upgrading and repositioning plan for our existing resorts and a development plan to add new resorts to our portfolio. At Club Hotel Dolphin, we have already begun a Rs 500 million refurbishment project, which we expect to complete by September 2010. During the quarter, Serendib Hotels PLC divested part of its shareholding in Hotel Sigiriya PLC, for the purpose of funding some of its development plans,” he said.
He has said that Hemas’ Power sector profits have increased from Rs 8 million during the first quarter of last year to Rs 60 million for the quarter ended June 2010 mainly due to the renewable energy segment, which almost doubled its profits from last year’s first quarter, and partially attributable to the absence of a significant overhaul in the thermal segment, which impacted last year’s profits. “With investments already in place in the domestic leisure, power, transportation and healthcare Hemas is primed to reap significant benefits in current post conflict Sri Lanka. The healthy balance sheet will facilitate the group to capitalize the available market opportunities,” an analyst said. |
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