Hemas 3Q profits up 50-pct primarily driven by seasonal demand for Atlas

Feb 08, 2019 (LBO) – Profit attributable to the equity holders of Hemas Group has reported a 50 percent growth primarily due to the strong performance at Atlas, during the third quarter.

The quarter recorded a revenue and operating profit of 18.0 billion rupees and 1.9 billion rupees, a YoY growth of 46.8 percent and 92.6 percent correspondingly.

Hemas Holdings achieved higher revenues and profit growth primarily due to the solid performance at Atlas, during its critical Q3 peak season.

The group reported a consolidated revenue of 48.0 billion rupees for the nine months ended December 31, 2018, indicating a Year-over-Year growth of 37.8 percent, primarily driven by the acquisition of Atlas.

Group operating profit stood at 4.3 billion rupees, a growth of 45.8 percent over the previous financial year. The profit attributable to equity holders of the parent at 2.5 billion rupees is a YoY growth of 19.2 percent.

Hemas Holdings delivered year-to-date organic revenue growth of 15.7 percent and a recurring organic operating profit growth of 2.6 percent, excluding Atlas performance and the disposal gain arising from the Galle Hospital divestment.

“Organic profitability growth remains as a challenge due to unprecedented rupee depreciation coupled with price controls at Pharmaceutical distribution and Morison,” CEO Steven Enderby said.

“Unrealised forex losses arising from the translation of foreign currency denominated loan at our Anantara Peace Haven Tangalle hotel made a negative contribution to operating profit of Rs.174Mn, 5.7% of recurring operating profit.”

During the nine months under review, their consumer business recorded a revenue growth of 73.0 percent while the healthcare sector achieved a revenue increase of 23.6 percent.

Hemas Leisure achieved a revenue growth of 19.3 percent for the nine months while Hemas Logistics and Maritime sector recorded a revenue growth of 6.3 percent.

Their technology business, N*able reported significant growth in the third quarter with increased revenues over last year by 81.1 percent.