Hemas Holdings reports stable FY25 Q1 amidst market challenges
View(s):Hemas Holdings PLC, in announcing its financial results for the first quarter ended June 30, 2024, says it demonstrated resilience in a challenging economic environment.
The group’s consolidated revenue was Rs. 25.5 billion alongside operating profits of Rs. 1.9 billion and earnings of Rs. 0.9 billion. The revenue decrease compared to the previous year was largely due to downward price adjustments and subdued consumer spending, exacerbated by extended holidays in the first two months of the quarter. Despite the revenue dip, the group’s profitability margins benefited from efficiency improvement initiatives and reduced finance costs, the company said in a media release.
The Consumer Brands sector reported revenue of Rs. 8.9 billion, with operating profits of Rs. 0.8 billion and earnings of Rs. 0.6 billion. Despite lower revenue, margins improved due to supply chain efficiencies and productivity initiatives.
The quarter saw a successful emphasis on personal care, with notable market presence in Baby and Feminine Hygiene segments. Innovations included the launch of Baby Cheramy Liquid Soap and new variants of Goya Soap. ‘Atlas’ maintained its market leadership, expanding its share in both the premium and value-for-money segments. ‘Kumarika’ increased its market share in the VAHO market, driven by new value-for-money and pure coconut oil products, while ‘Actisef’ continued to be an essential part of the portfolio.
The Healthcare Sector performance delivered revenue of Rs. 16 billion, with operating profit of Rs. 1.3 billion and earnings of Rs. 0.8 billion. Profitability increased due to overhead optimisation, improved working capital management, and lower interest rates, the release said.
In addition, the sector sustained its market-leading position despite market contraction and regulatory price reductions.
The Mobility Sector’s revenue grew 14 per cent to Rs. 475.9 million, driven by maritime volume growth. Operating profit and earnings both more than doubled, reaching Rs. 455.3 million and Rs. 269.7 million respectively.
“Looking ahead, Hemas is committed to expanding its footprint domestically and globally, executing strategic priorities from its Long-Range Plan, and maintaining strong liquidity and efficient resource allocation. The group continues to drive operational transformation across all business segments, aiming for sustained growth amidst ongoing market challenges,” the release added.
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