Hemas Group recorded a Rs. 1.3 Bn profit after tax whilst the Group revenue reached Rs. 21.4 Bn recording a 18.5% growth. Revenue growth was driven by Healthcare, FMCG and Power sectors. While earnings for the first half were down by 17.2%, performance bounced back strongly during the third and fourth quarters to close the year with earnings of Rs. 1,209 Mn.
The FMCG business grew revenues and earnings by 14% and 10.7% respectively, which was a good result after a difficult first half. Healthcare sector recorded a revenue growth of 14.8% and an impressive earnings growth of 41.8%. The Hotels sector closed the year with revenues of Rs 1.2Bn and a profit after tax of Rs 94Mn to enjoy a tremendous year despite the half-year closure of Hotel Serendib for refurbishment. The Transportation sector recorded a revenue of Rs 722Mn, and earnings of Rs 242Mn. Although Transportation revenues had declined by 1.7%, sector profits increased by 8.2%. Power sector recorded a Rs. 4.4.Bn revenue and Rs. 203 mn earnings. However, Earnings were impacted in the Power Sector due to extremely low rainfall in the catchment areas of its hydro power plants. Added to this was the rapid decline of the Rupee which affected most of the sectors.
During the year under review the Group generated operational profits of Rs. 1.96 Bn, a growth of 7.7%, while investing Rs. 1.5 Bn in projects that will hold the company in good stead in the years to come. Through these investments, the Group repositioned and re-branded Hotel Serendib as Avani Resorts, commenced development of its third Hospital at Talawatugoda, and commissioned another mini hydro plant in Upper Magalganga.
“In the past the group has been actively investing in Hospitals, Hotels and Power, with a long term focus. Over the past five years, Group investments have exceeded Rs. 5 Bn. Together with the learning experience from our first two hospitals coupled with our long term positive outlook on the industry we embarked on our third hospital in Thalawathugoda in early 2012. . Given the improved outlook of the tourism industry in Sri Lanka the Hotel group has revived its plans to develop its 43 acre property in Tangalle in the coming year” said Mr. Husein Esufally, Group CEO of Hemas Holdings PLC.