Hemas 4Q net down 18% to Rs.771mn, FY 2015 follows suit
Diversified conglomerate, Hemas Holdings PLC (Hemas) posted a net profit of Rs. 771.6 million for the quarter ended March 31, 2014 (4Q’15), down 17.6 percent from a year ago due to a heavy increase in selling expenditure and the fall in other operating incomes, the interim results released the Colombo Stock Exchange showed.
The Earnings Per Share (EPS) dropped to Rs.1.50 from Rs.1.82 a year ago.
However the top line grew by 18 percent year-on-year (yoy) to Rs.8.9 billion while the cost of sales too rose by a slightly higher rate of 20 percent yoy to Rs.5.9 billion leaving with a gross profit of Rs.2.9 billion, up 16 percent yoy.
Notably the other operating incomes declined by a hefty 56 percent yoy to Rs.354.2 million. Further selling and distribution costs rose by 40 percent yoy to Rs.911.8 million while the administrative expenses rose by 14 percent yoy to Rs.1.16 billion.
Meanwhile the finance cost for the 4Q’15 declined by
33.3 percent yoy to Rs.117.3 million.
Meanwhile for the financial year ended March 31, 2015 (FY 2015) the group posted a net profit of Rs.1.9 billion, down 20 percent.
The EPS declined to Rs.3.74, down from Rs.4.68 a year ago.
For the FY 2015 too, the top line grew by 19 percent to Rs.32.5 billion while the cost of sales increased by 18 percent to Rs.21. 1 billion.
This resulted in a gross profit of Rs.11.4 billion, up 21 percent. Other operating incomes declined by 60 percent to Rs.546.3 million. Selling and distribution costs rose 23 percent to Rs.3.4 billion while administrative expenses rose by 17 percent to Rs.5.3 billion.
Hemas in recent times is seen refocusing its strategies on wellness business as it divested its power sector operations during the year.
Commenting on the group’s Bangladeshi operations, Hemas CEO, Steven Enderby said the company had established its own sales and distribution network in Bangladesh.
“Of particular note has been the progress of our personal care business in Bangladesh. During the year we have established our own sales and distribution network in Bangladesh enhancing our market coverage and providing us with more detailed insight in consumer behavior,” he said releasing a statement. The segmental results shows that the cash cow, FMCG segment increasing its net profits to Rs.1 billion from Rs.821 million last year on a total revenue of Rs.11.9 billion.
The healthcare segment too increased its net profits to Rs.966.9 million from Rs.718.8 million last year on an increased revenue of Rs.13.9 billion.
However the leisure and the transportation segments narrowed their net profits for the FY 2015. Leisure sector net profits edged down to Rs. 144.9 million from Rs.153.4 million last year on a revenue of Rs.3 billion.
Meanwhile the transportation segment net profits declined to Rs.380.2 million from Rs.425 million last year on an increased revenue of Rs.1.5 billion.