Amid an improving macroeconomic landscape, Hemas Holdings PLC delivered robust results for the financial year 2023/24 to report a cumulative revenue of Rs. 121.6 billion, marking a 6.7 percent increase over last year.
Driven by the strong performance of the core businesses and reduced finance costs, the earnings demonstrated a significant 43.1 percent growth, reaching Rs. 6.1 billion, the highest ever earnings reported by the Group in a single year,” said Hemas Acting Chief Executive Officer Ravi Jayasekera.
The Group reported a marginal decline in revenue for the quarter mainly due to the change in seasonality of the Learning Segment, resulting in a timing difference in the Consumer Sector. Despite the decline in revenue, the positive impact of efficiency improvement initiatives resulted in operating profit increasing by 4.3 percent while the earnings improved by 48.8 percent to reach Rs. 1.6 billion.
The Healthcare Sector reported a revenue of Rs. 69.1 billion, a growth of 6.9 % while the operating profit for the period witnessed a decline of 7.6% against last year due to an increase in overheads, inventory provisions and one-off stock adjustments attributable to price revisions for regulated medicines.
During the quarter, Healthcare Sector revenue increased by 9.1 %, to close at Rs.18.2 billion mainly due to the improved contribution from the Pharmaceutical Manufacturing segment. The growth was driven by the notable growth in the Morison branded portfolio and Government orders. Despite the contraction in operating profit, the earnings for the year Rs. 2.3 billion, posted a growth of 12.3 percent due to a reduction in finance costs and lower taxes.
The Mobility Sector witnessed a cumulative revenue growth of 3.9 % to reach Rs. 1.7 billion, while operating profit and earnings reported an approximate degrowth of 20 percent mainly due to the appreciation of the LKR.
The resilient performance of the core operations, coupled with successful initiatives aimed at optimising working capital, led to a significant improvement of Rs. 23.2 billion in operating cash flow compared to the financial year 2022/23. Additionally, the transition from a Net Debt position to a Net Cash position resulted in a net gearing ratio of minus 1.2%.
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