Demonstrating resilience in challenging economic environment, Hemas Holdings PLC Group posted consolidated revenue of Rs. 25.5 billion and operating profits of Rs. 1.9 billion and earnings of Rs. 0.9 billion in the first quarter ended June 30, 2024.
The revenue decrease compared to the previous year was largely due to downward price adjustments and subdued consumer spending, exacerbated by extended holidays in the first two months of the quarter. Despite the revenue dip, the Group’s profitability margins benefited from efficiency improvement initiatives and reduced finance costs. The Consumer Brands sector reported revenue of Rs. 8.9 billion, with operating profits of Rs. 0.8 billion and earnings of Rs. 0.6 billion. Despite lower revenue, margins improved due to supply chain efficiencies and productivity initiatives.
The quarter saw a successful emphasis on personal care, with notable market presence in Baby and Feminine Hygiene segments. Innovations included the launch of Baby Cheramy Liquid Soap and new variants of Goya Soap. ‘Atlas’ maintained its market leadership, expanding its share in both the premium and value-for-money segments. ‘Kumarika’ increased its market share in the VAHO market, driven by new value-for-money and pure coconut oil products, while ‘Actisef’ continued to be an essential part of the portfolio.
“The Healthcare Sector performance delivered revenue of Rs. 16.0 billion, with operating profit of Rs. 1.3 billion and earnings of Rs. 0.8 billion. Profitability increased due to overhead optimization, improved working capital management, and lower interest rates,” said CEO, Hemas, Ravi Jayasekara. In addition, the sector sustained its market-leading position despite market contraction and regulatory price reductions.
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