Sri Lanka
USA
Canada
India
UK
UAE
Hemas PLC posted a 31.9% rise in annual net profit, reaching Rs. 8.1 billion, with strong gains from its healthcare and mobility divisions. The positive results come even as revenue shrank in the March quarter and the consumer segment continued to lag.
In the March 2024 quarter, group revenue fell 3.5% year-on-year to Rs. 30.3 billion, but net profit soared 63.6% to Rs. 2.6 billion. The earnings boost was driven by better operational efficiency, improved margins, and reduced finance costs.
Sector Highlights:
Consumer Segment: Full-year revenue dropped 9.4% to Rs. 46 billion, with earnings dipping slightly by 0.3%. In the latest quarter alone, revenue plunged 20.8%, and profits fell 5.4%, largely due to previous price cuts and increased market competition.
Healthcare: This sector was a major growth driver, bringing in Rs. 70 billion in revenue and Rs. 4.3 billion in earnings. Improved pharmaceutical distribution, local production of advanced cardiovascular drugs, and better hospital performance underpinned the results.
Mobility: Despite weak exports and transshipment volumes, higher import volumes at the Port of Colombo and increased Emirates flight frequency helped lift quarterly profits to Rs. 266.7 million, with revenue steady at Rs. 487 million.
Strategic Moves:
Hemas Hospitals: Commissioned a Rs. 1 billion Catheterisation Lab at Wattala.
Share Split: Announced a 5-for-1 share split to improve accessibility for retail investors.
Bangladesh Operations: Benefited from easing inflation and launched the new ‘Vibe’ male grooming line.
Despite headwinds in the consumer segment, Hemas shares rose 16.2% in the March quarter, outperforming the market, which declined by 0.8%.
Sri Lanka’s broader economic recovery, with a 5.0% GDP growth in 2024, a stable rupee, and easing inflation, has created a more favourable outlook for Hemas’ strategic investments in the coming year.
