Hemas Achieves Record Earnings for FY 24

Wednesday, 22 May 2024 13:30

Hemas Achieves Record Earnings for FY 24

Businesscafe - Revenue grew by 6.7% to Rs. 121.6 Bn driven by the improvements in all key BUs, Despite the volume contractions in all industries across Hemas managed to outperform the market with market share increases in key segments.

• Home and Personal Care Sri Lanka

o Increased focus on high margin personal care segment.
o Value for money offerings
o Providing innovative solutions and NPDs including

• Home and personal care International

o Efforts to increase foot print in key markets East Africa and Middle East.
o Launched new variants in those markets.

• Learning Segment had a good back to school season and entered the value for money segment with Homerun

• Pharmaceuticals – Increased focus on Morison branded generics

• Hospitals introduced Ambulatory care and focused on improving home care and drove key anchor specialty revenues

- However, revenue growth was not up to the expected levels due to adverse impact of the macro-economic challenges.

- Even though the country saw improvements in the external sector and progress was made in the IMF programme, consumer spending remained low.

• Despite yoy contraction inflation is on an elevated base

• Changes to the personal income tax laws and VAT laws (from 15%- 18%)

• Increase in utility prices and fuel costs.

• Healthcare Sector particularly remained challenged amidst instability and delays in Government regulatory bodies and procurement authorities.

- However, there are some green lights with interest rates slowing and exchange rates slowing. We expect these positive to result in a demand recovery in the coming quarter.

- The businesses across the Group engaged in efficiency improvement initiatives.

Allowing breathing space for the businesses to absorb increases in operating overheads.

- Working Capital optimisation which has been a key priority and this along with interest rate reductions resulted in a significant improvement in finance cost and working capital.

Which intern resulted in reduced gearing and over Rs 23.2 Bn growth in operating cashflows.

- Consequently, the Group reported a 43.1% growth in earnings to report highest ever earnings of Rs. 6.1 Bn for the year

- Strong Financial position of the Group was verified by the Fitch The reaffirmation of the AAA (lka) Stable Outlook Rating by Fitch Ratings for the fifth consecutive year is a testament to the Group’s resilience and financial strength.

- We remain cautiously optimistic about the future.

- Our Strategic priorities to drive organic and inorganic growth,

• Consumer : Investing in underpenetrated segments like beauty and baby diapers, internationalisation and export footprint.

• Healthcare : Developing a branded generics portfolio under the brand Morison, driving distribution capabilities, expanding in key anchor specialties, and investing in the transition to a fully-fledged tertiary hospital.

• Improving the digital infrastructure and fostering a culture of data-driven decision-making will be a priority for all businesses as the

- Group continues its 75-year-long journey in empowering lives through innovative solutions for the future.

Last modified on Wednesday, 22 May 2024 13:40