New challenges from second COVID wave–Hemas Group

The outbreak of the second wave of COVID-19 in Sri Lanka and the likelihood of subsequent waves is expected to give rise to significant challenges in managing Hemas Holdings Ltd (HHL)’s day-to-day business operations, according to Kasturi C. Wilson, Group Chief Executive Officer (CEO).

In her first review as group CEO since taking over recently – as the first female group CEO of a Sri Lankan listed company – Ms. Wilson said: “Whilst we extend our fullest cooperation to the Government in its efforts towards curtailing the spread of the virus, we are mindful of the possible slowdown in the strong recovery momentum witnessed during the second quarter of the financial year and possible business interruptions which may lead to sub-optimization of our capacity.”
 
HHL posted a group revenue of Rs.17.4 billion for the quarter ending  September 2020, an increase of 11 per cent over corresponding period last year. Group operating profit for the quarter under review at Rs.2  billion is a growth of 188 per cent over Rs.0.7 billion recorded last year. Year on year increase in earnings amounted to Rs.1.1 billion to reach Rs.1.3 billion for the quarter. 

Group operating profit of Rs.2.4 billion for the first six-month period is a notable year on year increase over Rs.0.7 billion recorded last year. 

“Growth in profitability during the quarter and first six months under review against the corresponding periods last year is reflective of the strong rebound in key sectors, Consumer and Healthcare which were impacted in the aftermath of the Easter Sunday attacks. Robust year on year performance was also driven by the realization of margin improvements, and cost savings resulting from lean and efficiency initiatives across the group,” she said in her review.    

During the period under review, the group managed to surpass the performance of the corresponding period of financial year 2018/19 where no anomalies were experienced, reassuring its resilience and faster than anticipated recovery from Easter Sunday attacks and the first wave of COVID-19.