Hemas delivers robust performance in 1H

Thursday, 10 November 2022 02:16 - - {{hitsCtrl.values.hits}}

Hemas Holdings Group CEO Kasturi C. Wilson

Hemas Holdings has delivered a robust performance for the first six months through what the Company described as value creating relationships and execution of prudent strategies.

Group revenue was increased by 43.4% to Rs. 52 billion and operating profits by 79.1% to Rs. 4.7 billion whilst the Group earnings grew by 41.1% to Rs. 2.2 billion.

In the 2Q of FY23 the Group posted a revenue of Rs. 27.1 billion up 36.8% year on year driven by defensive core sectors and improved performance of key focus areas including international business and exports.

Despite the margin pressure witnessed with high input costs and supply chain challenges, the operating profit for the quarter Rs. 2.7 billion was an increase of 74.1% against last year in which pandemic driven disruptions to businesses were present. The same growth momentum was not translated to earnings due to significant increase in finance cost resulting from increased borrowings to fund working capital. Group earnings grew by 22% to Rs. 1.2 billion in 2Q. Hemas also announced its first interim dividend of 40 cents per share.

Hemas said in 2Q macroeconomic pressures continued to impose challenges leading to high interest rates, multiple proposals to change the tax structure, lower liquidity in foreign currency, disruptions to power supply and scarcity of essentials. Soaring inflation of over 70%, pushed a greater portion of the population below the poverty line, hampering the purchasing power of the consumers, it added. In 2Q consumer brands and healthcare segments did exceptionally.

Commenting on the future outlook, Hemas Holdings Group CEO Kasturi C. Wilson said: “We expect the economic pressure and uncertainty to be heightened in the quarters to come.”

Nevertheless, she said Hemas will continue to focus on the strategic pillars that enabled the Group to sustain and deliver balanced growth during pressing times.

“Backed by a resilient core portfolio and the extensive innovation pipeline to cater to changing consumer needs, volume driven market share gains will be prioritised by all businesses in the short-medium term,” said Wilson adding regional expansions via internationalisation and exports will be a key focus area.

She also said on the back of the hyper inflationary environment, strategies on strengthening the Group’s liquidity position via effective working capital management, increase in digitisation efforts, realising of Group wide synergies and implementing efficiency improvement initiatives will be further integrated into the business operations.