•  Group revenue improves marginally by 4.9% YoY
•  Strong contribution is seen from learning segment due to seasonality effect
•  Consumer brands and mobility sector revenues up 13.2% and 19.8%
•  Healthcare revenue down 27% but earnings expand 16.9%

Hemas Holdings PLC saw its top and bottom lines for the third quarter ended on December 31, 2024 improve with strong contribution from the learning segment, due to the seasonality effect and the positive impact of efficiency improvement initiatives.
For the 3Q24 period, Hemas Holdings Group revenue witnessed a marginal increase of 4.9 percent, standing at Rs.31.2 billion. Its operating profit and earnings registered a growth of 19.6 percent and 126.6 percent, reaching Rs.3.9 billion and Rs.2.2 billion.
The group saw its selling and distributing expenses dip by 3.2 percent year-on-year (YoY), whereas its administrative expenses expanded by 44.9 percent YoY.

The consumer brands segment saw revenue for the quarter grow by 13.2 percent to Rs.15.4 billion while the operating profits reported a growth of 73.8 percent, due to improved performance of the home and personal care business and the seasonality impact of the learning segment. Amidst the increase in operating profits, lower finance costs and impact of reduced NCI, earnings for the period reached Rs.2.1 billion, posting a growth of 179.2 percent for the quarter.
During the quarter, the healthcare segment saw its revenue decline by 2.7 percent, reaching Rs.15.3 billion. The operating profit contracted by 25.1 percent, amidst increased overheads to reach Rs.1.0 billion. Attributed to lower finance costs, resulting from working capital management initiatives and reduced interest rates, the earnings of Rs.482.0 million posted a growth of 16.9 percent.
The mobility segment posted a revenue of Rs.460.4 million, a growth of 19.8 percent, mainly due to the increased volume from seasonal cargo. The revenue growth was translated to operating profits, recording a growth rate of 20.2 percent at Rs.279.6 million, while the earnings for the period reached Rs.144.2 million, at a growth rate of 53.4 percent with lower tax expenses.    While the broader macroeconomy has shown a turnaround, the consumer disposable income continues to be hampered amid multiple adjustments to direct and indirect taxes and inflationary pressure.

Revisions to the prices of basic utilities such as electricity tariffs, coupled with recent changes to the Value Added Tax laws, have exacerbated the situation for the general population.    “While these modifications have played a key role in the efforts of economic revival, they have simultaneously posed difficulties for the average citizen, creating a complex economic landscape with both promising and challenging aspects,” Hemas Group CEO Kasturi C. Wilson said. Hemas, cognisant of these challenges persisting in the upcoming quarters, remains confident in its capability to navigate the headwinds and sustain resilience, she added.
At a consolidated level, Hemas demonstrated a steady performance in the first nine months of the financial year 2023/24, achieving a cumulative revenue growth of 10.3 percent, amounting to Rs.90.2 billion.
The operating profits for the period mirrored the revenue growth, reaching Rs.8.8 billion, while the earnings experienced a 41.2 percent increase, posting a total of Rs.4.5 billion.