Hemas kicks off FY26 with resilient performance in 1Q

Group CEO Ashish Chandra

Hemas Holdings PLC yesterday said it sustained a positive trajectory in the first quarter of FY2026 from the previous year, achieving a cumulative revenue of Rs. 28.5 billion, delivering a resilient performance.

Operating profit and earnings grew by 6.9% and 26.1%, respectively, reaching Rs. 2.1 billion and Rs. 1.2 billion for the quarter. The year-on-year (YoY) improvement in Group earnings was driven by stronger topline growth, improved gross profit margins, and reduced finance costs. 

Hemas...

During the quarter, the Hemas share continued its upward trajectory, marking a robust YoY gain of 83.1%.

Hemas Holdings PLC new Group CEO Ashish Chandra said: “As I take on this responsibility, I am encouraged by the signs of macroeconomic stabilisation and remain confident that our strategic direction will drive sustainable growth for the Group in the year ahead. We are currently evaluating overseas expansion opportunities and the extension of the Thalawathugoda hospital—ventures that are aligned with our long-term growth priorities and designed to unlock scale and value across the portfolio. 

I look forward to working closely with our teams and partners as we navigate this next phase—focused, grounded, and committed to creating long-term value for all our stakeholders.”

In a statement, Hemas shared the following highlights from its 1Q performance.

The Consumer Brands sector continued to strengthen its market presence through focused sales and promotional initiatives, which supported volume recovery across key categories. Despite a marginal 2.6% YoY decline in revenue, primarily due to price adjustments taken previously that were driven by input cost deflation, the sector maintained its profitability with earnings growing by 13.6% to Rs. 665.6 million, through a combination of portfolio mix optimisation and sustained process improvements. 

In the Home and Personal Care – Sri Lanka sector, Beauty and Personal Care recorded encouraging volume growth during the quarter, driven by strong performance in key brands such as Vivya, Velvet, Dandex, and Goya. In contrast, Personal Wash and Home Care segments experienced moderate volume declines. In line with evolving consumer needs, the Group expanded its Personal Care portfolio with the launch of Gold Hair Wax, further strengthening its presence in the male grooming segment.

In Consumer Brands International, with Bangladesh’s macroeconomic environment continuing to improve, the business maintained its positive momentum during the quarter, with earnings growth driven by increased revenues, margin expansion, and a favourable sales mix. 

In the Learning sector, Atlas sustained its market leadership across key categories, with most segments recording YoY revenue growth during the quarter. The Atlas PlayPalz range of educational aids and toys is now marketed islandwide and, to-date, over 3,600 preschool teachers have been trained on the effective use of these products.

The Healthcare sector delivered a strong revenue growth of 20.2% during the first quarter, reflecting the strength and resilience of its diversified portfolio. All segments—hospitals, pharmaceutical distribution, and manufacturing contributed positively to this performance. This growth momentum was supported by continued investments aimed at enhancing service quality and expanding product offerings. The sector reported a quarterly revenue of Rs. 19.4 billion, with an operating profit of Rs. 1.7 billion and earnings of Rs. 1.1 billion, representing a 29.4% and 26.8% YoY increase, respectively.

In the Pharmaceuticals sector, both Pharmaceutical Distribution and Manufacturing segments recorded significant improvements in profitability during the period, underpinned by robust topline growth, margin expansion, and disciplined operational execution. 

During the quarter, Hemas Pharmaceuticals Ltd., (HPPL), the leading pharmaceutical distributor in Sri Lanka, further reinforced its commitment to expanding access to quality, world-class healthcare solutions by introducing several new therapies in the lipid and blood pressure regulatory segments. With the objective of unlocking greater group synergies and sharpening Morison’s focus on core manufacturing, Morison transitioned its distributed pharmaceutical agency operations to HPPL to leverage HPPL’s specialised commercial capabilities, allowing Morison to focus on scaling its manufacturing operations. 

The Government recently issued a Gazette (No. 2446/34) introducing price regulation, including establishing maximum retail prices for medicines. The implementation of this mechanism is expected to impact the selling prices of pharmaceuticals, which are currently market determined.

In the Hospitals sector, Hemas Hospitals Wattala opened Health Plus, a purpose-built facility which merges advanced clinical services with comfort and convenience in a lifestyle-integrated approach, offering seamless access to diagnostics, emergency care, and specialist consultations under one roof. Further, the hospital introduced Sri Lanka’s first Echosens FibroScan Expert 630 system, a globally recognised standard for liver health assessment. 

The Mobility sector posted a revenue growth of 4.0% YoY, reaching Rs. 494.9 million, primarily due to improved performance in cargo operations. Operating profit and earnings posted Rs. 298.2 million and Rs. 148.3 million, respectively.