Defensive core sectors help Hemas to pull off robust 2Q

Backed by its defensive core sectors, consumer juggernaut Hemas Holdings PLC recorded improved growth for the quarter ended September 30, 2022 (2Q23), the interim financial accounts released to the Colombo Stock Exchange yesterday, showed. 
The group which has interests in consumer, healthcare and mobility reported earnings of Rs.1.93 a share or Rs.1.15 billion for the quarter under review compared to earnings of Rs.1.58 or Rs.944 million reported for the corresponding quarter of the previous year.
The revenue for 2Q23 rose 36.8 percent YoY to US$ 27.1 billion, on the back of price increases rather than volumes while cost of sales rose 35.6 percent YoY to Rs.18.5 billion.
The group operating profit rose 74.1 percent YoY to Rs.2.7 billion.

However, the group’s finance cost surged over 750 percent YoY to Rs.969.7 million as a result of higher interest rates. 
The group’s consumer brands segment, which includes a host of personal care products and stationary items generated revenue of Rs.10.1 billion during 1Q23, up from 35.9 percent YoY. 
The segment reported earnings of Rs.616.1 million, up from Rs.497.6 million a year ago.
The group’s healthcare segment, which includes hospitals and pharmaceuticals business, recorded higher revenue for the quarter under review, largely driven by the pharmaceuticals business amid multiple price adjustments. 

The segment reported revenue of Rs.16.5 billion compared to Rs.11.7 billion a year ago. But segment earnings fell marginally to Rs.713.7 million from Rs.736.8 million. 
The group’s mobility business generated revenue of Rs.468.6 million during 2Q23, down from Rs.595 million and the earnings rose sharply to Rs.341.4 million from Rs.73 million a year ago. 
Commenting on the future business outlook, Hemas Group CEO Kasturi C. Wilson said the economic pressure and uncertainty is likely to be heightened in the quarters to come.
“Regional expansions via internationalisation and exports will be a key focus area,” she noted.

The segment reported earnings of Rs.616.1 million, up from Rs.497.6 million a year ago.
The group’s healthcare segment, which includes hospitals and pharmaceuticals business, recorded higher revenue for the quarter under review, largely driven by the pharmaceuticals business amid multiple price adjustments. 
The segment reported revenue of Rs.16.5 billion compared to Rs.11.7 billion a year ago. But segment earnings fell marginally to Rs.713.7 million from Rs.736.8 million. 

The group’s mobility business generated revenue of Rs.468.6 million during 2Q23, down from Rs.595 million and the earnings rose sharply to Rs.341.4 million from Rs.73 million a year ago. 
Commenting on the future business outlook, Hemas Group CEO Kasturi C. Wilson said the economic pressure and uncertainty is likely to be heightened in the quarters to come.
“Regional expansions via internationalisation and exports will be a key focus area,” she noted.