Hemas core business feels pressure from lower disposable incomes
Higher inflation and lower disposable incomes have hit the core consumer business of Hemas Holdings PLC while the recent investment in Atlas Axillia and other business expansions in both home and abroad are weighing on the group’s overall business performance.
Releasing the interim financial accounts for the quarter ended March (4Q18), the diversified conglomerate reported earnings of Rs.1.02 a share or Rs.585.3 million in total earnings compared to Rs.1.89 a share or Rs.1.1 billion reported for the corresponding period, last year.
The group revenue grew by 33.2 percent yearon-year (YOY) to Rs.15.3 billion. But the operating profit declined by 12.4 percent YOY to Rs.1.3 billion.
Hemas share closed Rs.1.00 or 0.8 percent down at Rs.124 at Friday’s close.
Meanwhile, for the year ended March 31, 2018, Hemas Holdings reported earnings of Rs.4.68 a share or Rs.2.69 billion compared to Rs.6.10 a share or Rs.3.49 billion in the previous year.
Full year revenue stood at Rs. 50.9 billion, up 17 percent YOY while the operating profit declined 11.3 percent YOY to Rs.4.25 billion.
In an earnings release, Hemas Group CEO Steven Enderby said the operating profit and earnings for the full year remained flat when adjusted for the Atlas acquisition, other investments on business expansion and asset disposals while the revenue growth moderated to 14.9 percent.