Hemas wants fully fledged sales and distribution pipeline in B'desh

The diversified conglomerate Hemas Holdings PLC (Hemas), with a presence in fast moving consumer goods (FMCG), healthcare, leisure, transportation and power sectors has plans to establish a fully fledged sales and distribution pipeline in Bangladesh, offcials said.

"We want to penetrate the Bangladeshi market with our personal care products and we want a total sales and distribution pipeline in Bangladesh for this." Steven Enderby, CEO Hemas told the Business Times. He said that a fully owned distribution network for FMCG products was launched in Bangladesh recently and they will expand it to a sales arm as well. Hemas, a key player in the FMCG space of the country for over 50 years catering to the personal care, personal wash and home care segments expanded to Bangladesh with their Kumarika hair care products a few years ago. "With this channel a huge growth opportunity is there for us in Bangladesh in FMCG," Mr. Enderby added, noting that Hemas is thinking about a regional strategy starting with Bangladesh.

The company releasing its results for the first half of the financial year 2014/15 said that Hemas Group has recorded consolidated revenues of Rs. 15.7 billion, a growth of 22 per cent and group earnings of Rs. 887 million, a drop of 9.9 per cent over the same period last year. "However, last year's corresponding period included a one off capital gain of Rs. 364 million on the transfer of Peace Haven to PH Resorts, a joint venture company.

Underlying earnings, adjusted for oneoff items, recorded a growth of 29.5 per cent over last year," Mr. Enderby has said in the results statement.

Hemas personal care business has grown revenue by 26 per cent to Rs. 5.9 billion with personal wash, oral care and home care categories contributing positively to sector top line growth. "The sector enjoyed a good quarter with encouraging volume growth contributing to the increase in revenue.

During the quarter, the sector divested its interest in the tissue and toilet paper category with the sale of Nimex," Mr. Enderby said.

The Healthcare sector recorded a growth in revenue of 13 per cent to Rs. 6.5 billion while the pharmaceutical segment's performance continued to be hampered by weak market conditions. "The industry grew at 0.03 per cent during the second quarter (Source: IMS). In these weak market conditions, the company maintained its market leadership position," Mr. Enderby has said.

J.L. Morison, achieved revenue growth of 5.3 per cent to Rs. 1.3 billion, led by an increase in production at our pharmaceutical manufacturing operation, which grew by 21.4 per cent over last year. "This growth is being augmented by our investment in the upgrading of the facility to meet globally recognised Good Manufacturing Practices and an increase in capacity. The business has recovered well from the plant shutdown which impacted Q1 results," Mr. Enderby has stated.

The Leisure sector achieved revenue growth of 39.4 per cent to record Rs. 1.2 billion. The growth in sector revenue was driven by the Hotels segment with revenues of Rs. 638 million, an increase of 86.9 per cent, while earnings grew to Rs. 89 million during the period under review. "But year on year comparisons are not particularly meaningful due to the closure of Club Hotel Dolphin and Hotel Sigiriya for refurbishment during the corresponding period the previous year. During the period the hotels recorded an average occupancy rate of 73 per cent," Mr. Enderby has said.

The Transportation sector posted revenues of Rs. 723 million, 27 per cent growth, with a strong contribution from the Maritime and Logistic segments, he has added. The Maritime segment continued to enjoy an increase in volumes driven by an increase in transhipment volumes to Sri Lanka, along with the addition of new des- tination ports during the last quarter. The Logistics segment consolidated its presence in container yard operations increasing capacity utilisation and contributed to the overall sector earnings growth of 16.3 per cent.

"Our IT solutions business, N-able recovered well from project delays in Q1 to enjoy a good quarter with the completion of several key contracts. The business recorded earnings of Rs. 43 million for the year to date, a significant increase over the same period last year," Mr. Enderby has said.

The Power sector posted a revenue of Rs. 262 million a decline of 22.1 per cent over the previous year hampered by the low rainfall experienced in Q1.

The heat rate reserve charge on the Heladhanavi income statement led to the decline in sector profitability, recording a loss of Rs. 45 million, which is a decline of 132.1 per cent over the previous year.

During the quarter, the group entered into an agreement to sell its shareholding in Hemas Power PLC to a consortium of buyers, consisting of NDB Capital Holdings PLC, ACL Cables PLC and Trydan Partners Private Ltd, thus divesting the company's interest in the Power sector. "This is an important move for the Group in line with our strategy to focus on our core strengths of Wellness, Leisure and Mobility," Mr. Enderby has added.