Consumer and healthcare fortify Hemas June quarter performance

The consumer and healthcare sector tilt provided Hemas Holdings PLC the defence against virus related restrictions on swaths of the economy during the three months to June, eclipsing all its businesses to its pre-pandemic performance but the company said price pressures blunted profit growth. 

The consumer goods behemoth reported revenues of Rs.16.4 billion in the April - June quarter, up 26.7 percent from a year ago period, largely due to the lower base that year caused by more stringent restrictions imposed at the onset of the pandemic in 2020 which remained through mid-May. 

However, June quarter revenues were about the same level or Rs.16.6 billion reported in the March quarter, reflecting the resilience of the company amid mobility restrictions which expanded into a month long lockdown. The company’s key business interests into consumer goods via its health and personal care range and

the stationary products, healthcare sector via its pharmaceutical and hospitals and the mobility sector through its marine and logistics businesses fortified the company’s sales and cash flows against the adversity brought in by the virus. 

The manufacturer of Kumarika hair oil, Baby Cheremy and Gripe among a sea of other health and personal care products reported revenues of Rs.5.4 billion in the three months to June under its consumer brand business, up by a robust 42.1 percent from the same period last year. 

“During the quarter, health and personal care segment delivered a robust volume-led growth although the pandemic continued to influence consumer behaviours and channel dynamics in our market,” said the company’s Chief Executive Officer, Kasturi C. Wilson in an earnings release. 

“ Consumption of certain discretionary categories were adversely impacted whilst key categories within personal care, personal wash and laundry continued to gain momentum and improved market share,” she added. 

The company also has operations in Bangladesh where the performance recovered during the first two months of the quarter after it relaunched Kumarika in the last financial quarter before the virus resurgence slowed down demand towards the end of the quarter. 

Atlas, the stationery manufacturing company under Hemas also saw sales recovering in the quarter over the same period last year through modern trade and e-commerce. 

Meanwhile, the group’s healthcare segment generated revenues of Rs.10.5 billion in the quarter, up 22 percent from the same period last year due to better performance in both pharmaceutical and its hospitals. The company however said the steep depreciation of the rupee continued to pressure the margins across both segments impacting overall profitability. 

The company’s Thalawathugoda and Wattala hospitals saw an average occupancy growth of 10 percent from a year earlier to reach 58 percent and 44 percent occupancy levels respectively. 

Meanwhile the group’s mobility sector comprising maritime business, logistics and aviation business reported revenues of Rs.586.6 million in the three months to June, up 29 percent from the same period last year. 

The combined performance of all three key business segments helped the company to report earnings of Rs.1.07 a share or Rs. 637.3 million for the April - June quarter compared to 45 cents a share or Rs.269.4 million in the corresponding period last year, translating into a 137 percent increase.