Sunday Nov 17, 2024
Sunday Nov 17, 2024
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The FMCG sector ended the quarter on an encouraging note recording a revenue of Rs. 7.2 b, a 26.8% growth over the previous nine months, while sector operating profits grew at 23.8% to record Rs. 660 m.
The sector’s personal care and personal wash categories were the main contributors to growth with Baby Cheramy, Clogard and Diva being the top performing brands. The sector’s eventful calendar continued with the re-launch of hair care brand Dandex in October, enhancing the product and packaging, with the objective of strengthening its proposition of being the leading anti-dandruff shampoo in the market.
With the intention of creating a modern consumer appeal for the brand a new communication campaign ‘Hisata Nidahasa’ was launched via TV, radio and press advertisements. During the quarter its men’s grooming brand Pro Sport was re launched as PRO whilst the washing power brand Diva was re-launched with improved product and packaging. The sector is poised for an eventful quarter, with an active program of restaging key brands to enhance appeal with consumers.
Healthcare
Hemas’ Healthcare sector recorded revenues of Rs. 8.8 b, a growth of 32.4% over the same period last year, whilst sector operating profit increased by an impressive 25.1% to reach Rs. 741 m. “Sector revenue was largely driven by the positive performance of our Pharmaceutical distribution business together with our new hospital at Thalawathugoda,” Esufally said.
"As we enter the last quarter, which is traditionally our best performing one, we remain optimistic of closing the year on high note – Hemas CEO Husein Esufally"
The Pharmaceuticals business posted an 18.9% growth in revenue, strengthening its market leadership position and increasing its market share to 19.2% (source: IMS).
The business recently finalised its purchase of a modern 35,000 square foot warehouse located on 180 perches of prime property in Elakanda, Wattala. Located closer to seaport and airport, the warehouse is equipped with all necessary facilities for regulatory compliance including cold storage and temperature controlled environments. This will further enhance capacity to accommodate future growth.
Hemas hospitals at Wattala and Galle experienced a marginal improvement in both topline and bottom-line. “Our new hospital at Thalawathugoda continued to see a steady pick-up in volumes driven by the local community and strengthened by the laboratory and theatre operations at the hospital,” the CEO said.
Leisure sector
Hemas Leisure sector recorded revenue of Rs. 891 m and an operating profit of Rs. 53 m for the nine months a 17.7% and a 78.8% decline, respectively. This was primarily due to the closure of Hotel Sigiriya and Club Hotel Dolphin for refurbishment during the period under review. Club Hotel Dolphin was reopened on 1 November 2013 after an extensive refurbishment and has since seen encouraging occupancy levels in excess of 80%, while Hotel Sigiriya was reopened earlier this year.
During the quarter all four of its hotels were awarded the ‘Travelife GOLD’ certification. ‘Travelife GOLD’ is an international certification developed by the travel industry to recognise the highest level of commitment of a travel partner towards sustainable travel practices. Avani Kalutara was bestowed the ‘Top Hotel 2014’ by Holiday Check, a popular e-travel site. With the availability of the Group’s full inventory and encouraging forward bookings, it is well positioned to compete with the new properties which are expected to enter the market going forward.
Transportation sector
Transportation sector posted a revenue of Rs. 1.08 b and an operating profit of Rs. 335 m, recording a growth of 44.6% and 25.1% respectively. Performance of the sector was largely driven by the aviation, transhipment and the logistics segments.
“Our new integrated logistics arm, Hemas Logistics celebrated the opening of its first container yard operation at Welisara in the month of November. Since its opening the yard operation has experienced a steady pick up in volumes, a trend we expect would continue into the next quarter. Sector performance was provided an additional boost with increasing transhipment volumes which contributed towards the improved profitability of the maritime segment,” Esufally said.
Power sector
Power sector recorded a marginal increase in revenue of 0.5% to post Rs. 4.4 b largely impacted by the drop in generation at its thermal power plant Heladhanavi resulting from the continued curtailment imposed by the CEB at the beginning of the financial year.
However, the impact was negated with the strong results from its hydro power sector which experienced higher rainfall around the catchment areas and by the increase in the avoided-cost-tariff during the year. The sector profitability was augmented by the notable performance of the hydro power assets held by Pan Asian Power PLC during the period under review.
Performance of recent acquisition
The performance of recent acquisition J.L. Morison Son & Jones (Ceylon) PLC has been encouraging with the pharmaceutical distribution and manufacturing segment recording an impressive revenue growth of 14.8% year on year. This growth has supported the company’s operating profit growth of 23.2%, despite a drop in revenue for the period ending 31 December 2014.
Post-acquisition, the management has been focusing on business integration to fall in line with Hemas policies, processes and systems, thereby gearing up the company for faster growth. The company which began operations in 1939 celebrated its 75th anniversary on 31 January.
“As we enter the last quarter, which is traditionally our best performing one, we remain optimistic of closing the year on high note,” Hemas CEO said.
