Hemas Archives

April 10, 2024

In celebration of World Down Syndrome Month, Hemas Outreach Foundation partnered Ayati Sports Club in a novel and inclusive rock climbing event. The initiative provided adolescents with Down Syndrome and other developmental conditions a unique opportunity to experience the exhilarating sport in a safe and empowering environment.

Accompanied by a dedicated team of professionals from Ayati, the participants were immersed in the exhilarating experience of rock climbing. Beyond the physical challenges, rock climbing offers a plethora of cognitive benefits, promoting problem-solving skills and fostering language and cognitive development, while enhancing fine motor, gross motor, and coordination skills.

Gracing the occasion, was Jayanthi Kuru-Utumpala, the first Sri Lankan to summit Mount Everest and representatives from Climblanka, who ensured a safe and enriching experience for the participants.

For Hemas Outreach Foundation, inclusivity lies at the heart of its mission to create an equitable space where stereotypes are challenged, barriers are broken, and all individuals, regardless of abilities, are encouraged to ignite their passion for sports and relentlessly pursue their dreams.

Supported by the Hemas Outreach Foundation, the Ayati Sports Club continues to make strides in enhancing the quality of life for its members and challenging societal norms. Shiromi Masakorala, Executive Director of Hemas Outreach Foundation / Ayati Trust Sri Lanka, expressed delight in supporting Ayati’s initiatives. “Eradicating stigma and promoting equality is of utmost importance to us. Through collaborative efforts with Ayati, we are committed to creating more inclusive opportunities and activities in the coming year,” Masakorala stated.

The AYATI Sports Club is part of the Ayati Centre, Sri Lanka’s first ‘National Centre for Children with Disabilities’ and is among the main initiatives of Hemas Outreach Foundation.

February 15, 2024

The Diva Daathata Diriyak Entrepreneurial Skills Development programme organized by Diva the flagship laundry brand of Hemas Consumer Brands, in partnership with Women In Management (WIM) has consistently aimed to empower women with the knowledge, skills, and confidence needed to navigate the challenges of entrepreneurship in today’s economic landscape. This impactful initiative is aimed at transforming mindsets from being producers to entrepreneurs, challenging the women entrepreneurs to look at the basics of business and empowering them with the tools for better financial management, pricing, marketing, customer care, digital marketplaces, branding and packaging. The programme has seen success in Dankotuwa, Jaffna, and Galle, and recently was extended to Welimada. With each session, the programme has expanded its reach and impact, empowering entrepreneurs across the island.

The Welimada session of the Diva Daathata Diriyak Entrepreneurial Skills Development Programme concluded on February 1, 2024, marking another milestone in the journey of empowering women entrepreneurs across Sri Lanka. This programme witnessed active participation from aspiring entrepreneurs eager to improve their skills and realize their entrepreneurial dreams. A total of 38 enthusiastic women entrepreneurs engaged in workshops, interactive sessions, and practical exercises designed to enhance their abilities. The Welimada session empowered the programme’s growing community of Diva empowered entrepreneurs, bringing the total count to an impressive 175 entrepreneurs across the island.

Reflecting on the success of the Welimada session, Derrick Antony, General Manager Marketing, Hemas Consumer Brands, expressed his enthusiasm, stating, “The Diva Daathata Diriyak Entrepreneurial Skills Development Programme continues to be a beacon of hope for aspiring women entrepreneurs across Sri Lanka. We are proud to see the programme making a tangible difference in the lives of participants, empowering them to pursue their entrepreneurial aspirations with confidence and resilience.”

The initiative stems from the profound insight that “the hand that rocks the cradle rules the world,” recognizing the pivotal role of women in shaping societies and economies, Diva understands the struggles many women face as they navigate economic hardships and aspire for financial freedom. Through empowering women with the tools and resources needed to become successful entrepreneurs, Diva stands as a steadfast pillar of support, championing their journey towards independence and prosperity which in turn will help home economy grow as well.

The involvement of local government authorities, particularly the Divisional Secretariat Office in Welimada, emphasizes the importance of collaboration between public and private sectors in fostering entrepreneurship and economic development at the grassroots level. Such partnerships are instrumental in creating an enabling environment for aspiring entrepreneurs to thrive and contribute meaningfully to their communities.

Moreover, Diva’s partnership with Women In Management further amplifies the programme’s impact, providing participants with access to a vast network of mentors, resources, and opportunities for growth and development. As Diva looks ahead, it remains committed to expanding its reach and impact, empowering more women entrepreneurs and fostering a culture of entrepreneurship and innovation in Sri Lanka.

February 14, 2024

Adora Cosmetic Centre, a distinguished independent cosmetic centre, operating with the reputed clinical backing of Hemas Hospitals, marks its 5^th anniversary in 2024. Since its inception on 14^th February 2019, Adora has solidified its position as Sri Lanka’s premier destination for cosmetic enhancements. With a comprehensive range of surgical and non-surgical procedures, performed using the latest and most cutting-edge technologies and treatments available in Sri Lanka, Adora Cosmetic Centre has built a reputation for its commitment to exceptional service, positive outcomes and patient-centric care.

Dr Malith B. Atapattu – Director Medical Services and Quality Hemas Hospitals and Laboratory Chain, commented saying, “Our unwavering commitment to transformative results has enabled us to emerge as the one-stop-shop for cosmetic transformations, backed by the prestige and clinical expertise of Hemas Hospitals. Our teams of plastic surgeons, dermatologists, and medical professionals work tirelessly to provide the safest and most effective medical and non-medical cosmetic solutions, ensuring our patients are able to achieve the aesthetic results they seek. The satisfaction and positive feedback from patients reflect our success, including a growing number of foreigners from across the world. Thus, as we celebrate 5 transformative years, we look forward to further enhancing lives and shaping dreams in the years ahead.”

With safety at the forefront, Adora’s state-of-the-art facility is equipped with a 24-hour emergency treatment unit to ensure the highest level of care, safety and security. The centre prides itself on offering a highly personalized experience, with unmatched levels of professionalism, privacy and affordability, treating each patient as a family member and customizing the experience depending on each individual’s needs. Adora Cosmetic Centre also benefits from its elite panel of consultants and the backing of Hemas Hospitals, which holds Australian Council on Healthcare Standards International (ACHSI)

Adora Cosmetic Centre offers a full range of non-surgical procedures including, chemical peels, PRP treatments, wart removals, injectables (including Botox and fillers), mesotherapy (derma stamping/microneedling), PDO thread lifts, and laser treatments for hair reduction, pigmentation, acne scar reduction, resurfacing, and skin tightening and body sculpting. The centre also offers a range of surgical cosmetic procedures, performed by expert surgeons, including reconstructive surgery, face lifts, breast augmentation/reduction, hip dip and body sculpting, liposuction, dimple creation, lip enhancement, cosmetic eye surgery, buttock augmentation, gynaecomastia correction surgery, and cosmetic surgery for transgender individuals.

For further information and or inquiries, please visit https://www.facebook.com/AdoraCosmeticCentre?mibextid=LQQJ4d or call Adora Cosmetic Centre on 0766995858.

February 8, 2024

Financial Year 2023/24 – First Nine Months Performance

Chief Executive Officer’s Review

LKR Mn Quarterly Financial Snapshot
	FY24 Q3	Vs FY23 Q3	Vs FY24 Q2
Consumer Brands	15,433.1	13.2%	34.0%
Healthcare	15,326.0	-2.7%	-14.4%
Mobility	460.4	19.8%	22.4%
Other	3.2	462.1%	-83.9%
Revenue	31,222.7	4.9%	4.7%

Gross Profit	9,851.3	23.5%	13.8%
Gross Profit Margin	31.6%	4.8pt	2.5pt

EBITDA	4,288.6	19.1%	35.2%
EBITDA Margin	13.74%	1.6pt	3.1pt

Operating Profit	3,868.5	19.6%	39.8%
Operating Profit Margin	12.4%	1.5pt	3.1pt

Net Interest Cost	(515.6)	-57.1%	-32.4%
Income Tax Expenses	(1,055.5)	23.6%	45.3%

Earnings	2,220.1	126.6%	82.0%

Amidst the backdrop of relatively stable operating conditions in the domestic economy, Hemas Holdings PLC (HHL) demonstrated a steady performance in the first nine months of the financial year 2023/24, achieving a cumulative revenue growth of 10.3 percent amounting to Rs. 90.2 billion. Operating profits for the period mirrored the revenue growth, reaching Rs. 8.8 billion, while earnings experienced a 41.2 percent increase, posting a total of Rs. 4.5 billion.

During the quarter, Group revenue witnessed a marginal increase of 4.9 percent standing at Rs. 31.2 billion. However, strong contribution from the Learning Segment due to seasonality effect and the positive impact of efficiency improvement initiatives resulted in operating profit and earnings registering growth of 19.6 percent and 126.6 percent, reaching Rs. 3.9 billion and Rs. 2.2 billion, respectively.

Operating Environment

Sri Lanka witnessed a gradual economic turnaround, marked by favourable shifts in key indicators. The Gross Domestic Product (GDP) for the third quarter achieved positive growth at 1.6 percent, ending a streak of consecutive negative quarters since the onset of 2022. Throughout the period, the exchange rate remained relatively stable, and the Average Weighted Prime Lending Rate (AWPLR), which was over 28 percent last year, has now reduced to below 12 percent. Furthermore, the external sector of the economy demonstrated optimistic developments, including a rise in tourist arrivals and an improved balance in the Current Account.

Despite the positive developments in the operating environment, consumer spending remained low due to substantial inflationary pressure. Although September 2023 marked a historic low in inflation growth, it is crucial to note that while this percentage denotes the lowest growth in recent history, the calculation is grounded on an already elevated base.

Consumer Brands

During the third quarter, there was a surge in demand across the industry attributable to the festive season; however, it did not reach the anticipated levels due to increased pressure on purchasing power of the consumers. Despite these challenges, modern trade channels exhibited a higher offtake compared to general trade channels with improved footfall to supermarkets during the period. Prices exhibited a gradual stabilisation characterised by comparatively minimal fluctuations in comparison to the preceding quarters.

With the commencement of the pre-school season in January 2024 and the imminent commencement of the back-to-school season in February 2024, the stationery industry performance remained significantly influenced by seasonal stocking across both essential and non-essential categories. Under relatively lower prices, intense competition unfolded across all three segments: mass, value-for-money and premium. Consumers, amidst inflationary pressure remained price sensitive, resulting in a tendency to strategically phase out their purchases.

The challenges in the economic landscape of Bangladesh were worsened by the prolonged inflationary pressure driven by soaring food inflation, concurrent political turmoil, timed with the parliamentary election held in January 2024.

The Consumer Brands Sector posted a cumulative revenue growth of 17.1 percent to reach Rs. 38.0 billion driven by the increased performance of the businesses amidst relatively stable operating conditions. Further to the revenue growth, improved product mix, cost-saving initiatives and lower finance costs resulted in the operating profit and earnings growing by 54.8 percent and 117.2 percent, reaching Rs. 5.7 billion and Rs. 4.1 billion, respectively.

The revenue for the quarter witnessed a growth of 13.2 percent to reach Rs. 15.4 billion while the operating profits reported a growth of 73.8 percent due to improved performance of the Home and Personal Care Business and the seasonality impact of the Learning Segment. Amidst the increase in operating profits, lower finance costs and the impact of reduced NCI, earnings for the period reached Rs. 2.1 billion posting a growth of 179.2 percent for the quarter.

Home and Personal Care

During the quarter, the Home and Personal Care business strategically intensified its emphasis on the personal care segment, yielding a notable surge in market share and enhanced performance within the category. The heightened focus on target market segments coupled with increased concentration on value propositions, empowered Hemas to outperform the market resulting in volume-led growth for key categories, including baby soap, oral care, and shampoo. While both the general and modern trade channels experienced volume growth, the modern trade channel exhibited a superior growth trajectory during the quarter. Sustaining ongoing investments in the beauty space, ‘Prasara’ continued to witness significant traction in the market.

Learning Segment

Leveraging seasonal offtake, ‘Atlas’ sustained its market-leading position in the mass market while simultaneously expanding market share in the newly entered premium and value-for-money segments. In line with the brand’s purpose of ‘making learning fun’, multiple digital efforts were undertaken to create a unique and novel Point-of-Difference (POD) in a highly commoditised mass segment, positively contributing to the brand value and the overall performance.

Consumer Brands International

Despite persistent inflation and the contraction in the value-added hair oil (VAHO) market, ‘Kumarika’ increased its market share marginally in the VAHO segment. Recent launches in the value-for-money verticals and the pure coconut oil market gained significant traction during the quarter, contributing over 10 percent to the overall revenue of the Bangladesh Business. The introduction of the personal care brand ‘Actisef’ a few years ago, as an initiative to mitigate single-brand concentration, has proven to be a substantial contributor to the topline.

During the quarter, ‘Atlas’ continued to focus on the East African market while increased focus in the Middle Eastern region resulted in repeat orders for ‘Kumarika,’ leading to a notable revenue contribution from the export segment.

Healthcare

Sri Lanka continued to face a web of interconnected health challenges, ranging from unresolved and persistent drug shortages, substandard medicines, unregulated importation, to the migration of healthcare workers. Amid reduced purchasing power, the pharmaceutical industry continued to witness a market shift towards low-quality, low-price variants, exerting pressure on volumes. Instability within the National Medicines Regulatory Authority (NMRA) resulted in delays in new product registrations and the acceptance of buyback orders by the The Medical Supplies Division (MSD), amplifying challenges for the pharmaceutical industry at large.

The Healthcare Sector posted a cumulative revenue of Rs. 50.9 billion, a growth of 6.1 percent while the operating profit for the period stood at Rs. 3.7 billion with a degrowth of 4.2 percent. Despite the increase in revenue, the decline in operating profit is due to the one-off adverse impact from NMRA price reduction on distributor inventory and inflationary pressure on overheads. Consequently, earnings decreased by 6.8 percent, reaching Rs. 1.7 billion, despite the increase in revenue and lower net finance costs.

During the quarter, the Sector revenue declined by 2.7 percent, reaching Rs. 15.3 billion, while the operating profit contracted by 25.1 percent, amidst increased overheads to reach Rs 1.0 billion. Attributed to lower finance costs resulting from working capital management initiatives and reduced interest rates, the earnings of Rs. 482.0 million posted a growth of 16.9 percent.

Pharmaceuticals

During the quarter, the Pharmaceutical Distribution Business witnessed volume-led growth outperforming the market in many key therapeutic segments. Multiple working capital initiatives resulted in approximate 50 percent reduction in finance cost for the Business arising from the combined effect of working capital base reduction and interest rate reduction. Over 20 new products were introduced to the market during the quarter in critical spaces including oncology, gastroenterology and cardiology.

The Pharmaceutical Manufacturing Business faced challenges with delayed registration of new products at NMRA for its primary focus area; Morison Branded Generics. Despite the slowdown in new registrations, branded portfolio continued to deliver robust performance, with ‘Empamor’ reclaiming its market-leading position in volume terms. Capacity utilisation levels at the ‘Homagama’ factory were maintained at over 50 percent with improved operational efficiencies.

Hospitals

Hospitals Business delivered strong performance for the period with double-digit growth in surgical revenue and in-patient revenue under elevated occupancy levels at both the hospitals. Increased focus on anchor specialties including nephrology, cardiology gastroenterology and orthopaedic segments yielded significant revenue growth in these areas.

Hemas Ambulatory Surgical Care was introduced during the quarter, a pioneering service designed to transform the way Sri Lankans experience surgical procedures. It adopts a unique patient-centric approach to improve convenience and cost-effectiveness, enabling patients to return home on the same day of the surgery and recover faster, better, and more comfortably.

Mobility

Despite the marginal recovery observed in merchandise exports towards the latter months of the quarter and the 6.3 percent growth in total throughput witnessed during the nine month period at the Port of Colombo, the Maritime Sector continued to witness challenges in both domestic and international spaces.The increased tensions in the Suez Canal have compelled vessels to redirect their routes around the southern tip of Africa, resulting in an extended journey duration of 10-14 days with many being rerouted via the Port of Colombo. Aviation space continued to witness challenges during the period in both passenger and Cargo verticals. However, both segments witnessed improved volume recovery during the quarter, with increased tonnage uplift for cargo, while the passenger vertical gained traction due to heightened student and labour traffic to Europe and the Middle East, respectively

The Mobility Sector witnessed a marginal decline in cumulative revenue to reach Rs. 1.3 billion, while the cumulative operating profit and earnings stood at Rs. 751.2 million and Rs. 402.6 million respectively, posting a decline of over 35 percent due to the adverse impact of lower freight rates and the appreciation of the domestic currency.

During the quarter, the Sector posted a revenue of Rs. 460.4 million, a growth of 19.8 percent mainly due to increased volume from seasonal cargo. The revenue growth was fully translated to operating profits, recording a growth rate of 20.2 percent at Rs. 279.6 million, while earnings for the period reached Rs. 144.2 million at a growth rate of 53.4 percent with lower tax expenses.

Leading with ESG

Hemas marked 75 years of enriching Sri Lankan families’ lives by investing in the country’s future. The Hemas x Hatch Slingshot, a three year corporate innovation programme supporting 75 startups, is a testament to the Group’s commitment to fostering a new ecosystem in Sri Lanka, with businesses contributing to essential infrastructure, knowledge, and capital. By supporting startups, the Group plays a crucial role in shaping an innovative and thriving future for Sri Lanka while delivering solutions that empower families.

The collaboration with Lanka Sathosa for the introduction of an eco-bag initiative is a part of the Group’s commitment to address plastic pollution in Sri Lanka. By encouraging and incentivising consumers to adopt eco-friendly practices, the Group aims to reshape consumption habits and foster a healthier environment.

The Hemas Consumer power brand Baby Cheramy joined forces with Sri Lanka College of Paediatricians to address the pressing issue of child injuries and launched a guide booklet focused on educating parents on prevention of home accidents. In response to the escalating violence against children in recent years, Hemas Outreach Foundation partnered with Sri Lanka College of Paediatricians and the National Secretariat for Early Childhood Development to launch the first-ever nationwide campaign aimed at empowering and educating preschool children to safeguard themselves against abuse.

In addition, the Group continued to address the needs of the communities through its social initiatives, focusing on empowering families and promoting inclusivity, equality, and diversity. The Group initiatives impacted over 62,000 families across the island, reinforcing the Group’s commitment to being a catalyst for positive change in the communities it serves.

Outlook

While the broader macro economy has shown a turnaround, the consumer disposable income continues to be hampered amid multiple adjustments to direct and indirectly taxes and inflationary pressure. Revisions to the prices of basic utilities such as electricity tariffs, coupled with recent changes to VAT laws, have exacerbated the situation for the general population. While these modifications have played a key role in the efforts of economic revival, they have simultaneously posed difficulties for the average citizen, creating a complex economic landscape with both promising and challenging aspects. Hemas cognisant of these challenges persisting in the upcoming quarters, remains confident in its capability to navigate the headwinds and sustain resilience.

In line with its purpose, the Group and its subsidiaries will continue to adapt a consumer centric approach in which meeting the ever evolving needs to the consumers would be an integral part. High emphasis will be made on both organic and inorganic growth within our core focus areas to exploit opportunities in Consumer Brands and Healthcare spaces. The Consumer Businesses will focus on championing local ingredients, cultivating purpose-driven brands and expanding in to international spaces. Simultaneously, the Healthcare Sector will prioritise ensuring availability, developing a Sri Lankan pharmaceutical brand and facilitating access to quality healthcare. Fostering a culture that empowers employees, Hemas will persist in nurturing talent across the Group while collaborating with our business partners to create long term value.

As my tenure as the Group Chief Executive Officer concludes on March 31, 2024, I want to express my heartfelt gratitude to the Hemas team for their focused efforts in navigating the pandemic and for standing with me during one of the toughest operating landscapes Sri Lanka has ever witnessed. Furthermore, I extend my deep appreciation to the Board for their unwavering belief in me and for providing continuous support and guidance. I have full confidence in the team’s ability to drive the company to greater heights and extend my best wishes for the Group’s continued success in the years to come.

February 7, 2024

Hemas Consumer Brands took centre-stage at the highly-anticipated SLIM Brand Excellence Awards 2023, clinching an impressive 5 awards across 3 of its key brands – Baby Cheramy, Fems and Vivya, in the highly-coveted categories of ‘Overall Product Brand of the Year’, ‘Best New Entrant Brand’ and ‘CSR Brand of the Year’. Encompassing diverse categories, these awards signify the perfect alignment of Hemas Consumer Brands to its core values of passion for customers – driven by innovation and pursuit of excellence. This recognition from amongst the best of the best brands in Sri Lanka reflects how Hemas Consumer Brands stays true to its purpose of “empowering families to aspire for a better tomorrow”.

At the SLIM Brand Excellence Awards 2023, Baby Cheramy, the No. 1 Baby Care brand by Hemas Consumer Brands, won ‘Product Brand of the Year’ (Bronze) to reiterate its position as the most trusted brand dedicated to creating a safer world for babies. The brand’s purpose of ‘creating a safer world for children’ has led to establishing an innovative 8-step safety process at its Baby Cheramy Safety Institute, a first of its kind initiative in Sri Lanka. Baby Cheramy also engages expectant parents, advocating inclusive parenting for the holistic development of children; creates and disseminates informative parental guide booklets, and regularly engages in expert-led educational Q&A sessions through digital media platforms.

Finally, the Fems brand won many key accolades at the SLIM Brand Excellence awards, including the coveted Gold award for ‘CSR Brand of the Year’ and a Bronze as ‘Best New Entrant’ for Fems AYA. In a stellar achievement, Fems was crowned with the prestigious ‘Product Brand of the Year’ (Silver) on the occasion, which reflects the high regard and level of acceptance in which the brand is held in the market, having steadily earned respect for its dedication to quality and consistency in being the leading brand to tackle the challenge of period poverty (with almost 70% women not using sanitary napkins regularly in Sri Lanka). Fems launched ‘Fems AYA’, a high-quality, low-cost sanitary napkin to make female hygiene products affordable and accessible. The brand’s commitment to have a socio-economic impact by shattering societal taboos and fostering dialogue about menstruation has been ably supported by a consumer-centric, data-driven and research-led approach, along with the highest standards of product quality, thus winning it prominence in the industry. These coveted SLIM Brand Excellence Awards 2023 for Fems follow on the heels of the brand receiving global recognition at the Top 50 Global Professional & Career Women Awards 2023 as the ‘Best Community Initiative’ for its Fems AYA project.

The success of Hemas Consumer Brands at the SLIM Brand Excellence Awards 2023 reflects not only its commitment to excellence but also the ability to remain dedicated to its core purpose in alignment with customer needs.

November 24, 2023

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Hemas Outreach Foundation (HOF) continues its collaboration with ‘Hoppers London’, a renowned Sri Lankan restaurant group in London, to extend their “Feed the Future” project, addressing the nutritional needs of vulnerable children on the brink of malnutrition in selected Piyawara preschools.

The partnership was born out of the economic crisis in 2022 and reached a significant milestone in 2023 with the construction of the 64th Piyawara preschool in the remote village of Poojapitiya, Kandy. This endeavor reflects Hoppers’ dedication to support children in need, with ambitious plans to further enrich Piyawara preschools in collaboration with Hemas.

The Executive Director, Hemas Outreach Foundation, Shiromi Masakorala in a statement, expressed pride in their partnership with Hoppers London. She commended their commitment to the welfare of underprivileged children in Sri Lanka. In 2022, the initiative provided essential dry rations to 367 children and families across six Districts in 15 selected Piyawara preschools. In 2023, the project’s scope expanded, offering vital support to 1,160 children and their families in 11 Districts through 34 selected Piyawara preschools.

Launched in 2002 by the Hemas Outreach Foundation, in partnership with the Ministry of Women and Child Affairs, Piyawara represents Hemas’ continued support of the national agenda in developing Early Childhood Care and Development (ECCD) in the country.

“I extend my gratitude to Karan Gokani and the Hoppers team for partnering in our efforts to address a national need and ensure no child is left behind. Their unwavering commitment is truly commendable. I would also like to emphasize the necessity for Sri Lankan authorities to facilitate an environment conducive to potential donors to come forward to support the nation’s essential causes,” added Abbas Esufally, Chairman of Hemas Outreach Foundation

“We setup our first Hoppers restaurant in 2015 as a result of our love for the food, culture and people of Sri Lanka. All these years later, our passion for Sri Lanka has grown manifold, and when the crisis struck in 2022, we were heartbroken and helpless sitting so far away. I was keen to create a charitable project that was meaningful, long lasting and transparent via which Hoppers could make a real difference on the ground. Finding Abbas, Shiromi and Hemas as partners who share our vision and dedication was a dream come true. We couldn’t be more pleased with how smoothly and efficiently the project has gone so far, and are fully committed to growing our contribution and scope of support exponentially in the years to come,” added Karan Gokani of Hoppers London.

November 24, 2023

Redefining the healthcare space in Sri Lanka, Hemas Hospitals is transforming patient recovery from advanced surgeries, allowing patients to return home on the same day and recover faster, better and more comfortably by adopting superior surgical techniques with its new initiative; Hemas Ambulatory Surgical Care.

This pioneering service is transforming the way Sri Lankans experience surgical procedures, making them more convenient, highly cost-effective, and, most importantly, providing a uniquely patient-centric approach.

Explaining further, Managing Director of Hemas Hospitals and Laboratory Chain, Dr. Lakith Peiris said, “Patients are known to have faster recovery at the comfort of their home in familiar surroundings with the assistance of an expert homecare medical team. The Hemas Ambulatory Care Surgical Centre enables patients to undergo a wide range of surgical procedures from minor surgeries to advanced interventions without the need for overnight hospitalization. This means, that patients can return to the comfort of their own homes on the same day as their surgery, promoting a faster recovery and reducing healthcare cost to patients as much as 30% compared to doing the same procedure as an in-patient making Hemas Hospitals the most cost-effective hospital in the country. By dedicating a specialized facility, the hospital is able to create an environment tailored to the unique requirements of outpatient procedures. Cutting edge equipment and advanced technology optimizes our ability to deliver safe and effective care enhancing patient outcomes.”

Hemas Ambulatory Surgical Care allows patients to access advanced surgeries at a cost that is 30% less than traditional in-patient procedures, resulting in cost-effectiveness and increased affordability for patients, but without compromising on the delivery of top-tier care. The facility stands out by seamlessly integrating the latest techniques and employing state-of-the-art surgical instruments and equipment, ensuring patients benefit from cutting-edge advancements in healthcare.

All surgeries are performed in strict adherence to Australian Council for Health Standards International guidelines, ensuring the highest quality and safety standards. A standout feature of Hemas Ambulatory Surgical Care is that it is provided through a technical collaboration with Alexandra Hospitals in Singapore, under the National University Health System which is a global leader in minimally invasive surgeries (MIS) and pain management. Additionally, the MIS unit of Alexandra Hospitals is under the leadership of distinguished Sri Lankan consultant surgeon, Dr Sujith Wijerathne. The collaboration between these two giants in healthcare, Hemas Hospitals and Alexandra Hospitals, is one of good will, allowing for exceptional care and access to the latest surgical innovations, at affordable price points.

Hemas Ambulatory Surgical Care is thus unveiling the future of fast-tracked surgery in Sri Lanka, providing cutting-edge, patient-centric, and cost-effective solutions.

November 10, 2023

Hemas Holdings PLC (HHL) delivered resilient results in the first six months of the financial year 2023/24 to post a cumulative Group revenue of Rs. 59.0 billion, a 13.5 per cent growth over previous year. Amidst the increasing strain on operating expenses, the Group’s operating profit and earnings for the period experienced a marginal growth of 4.1 percent and 3.7 percent, reaching Rs. 4.9 billion and Rs. 2.3 billion, respectively.

During the quarter, the Group achieved a 10.0 percent growth in revenue, posting Rs. 29.8 billion for the quarter, with operating profits and earnings for the quarter increasing to Rs. 2.8 billion and Rs. 1.2 billion, respectively.

Operating Environment

In comparison to the previous year, Sri Lanka’s economic landscape has shown some developments. There has been a significant reduction in inflation with September closing at 0.8% growth on a year-on-year basis although being on an inflated base. Amidst ongoing pressure on the external sector, the exchange rate remained fairly steady throughout the quarter, and interest rates experienced a substantial decline of over 120 percentage points, reducing the burden associated with financing costs.

Given the progress made in the domestic debt optimisation efforts and external debt restructuring discussions, the disbursement of the second tranche of the IMF loan is anticipated in the near future.

Nevertheless, Sri Lanka continues to face a multitude of issues, including elevated unemployment rates, constrained disposable income of individuals, and the formidable challenge of managing an extensive debt burden. Consumers, grappling with reduced purchasing power, maintained a cautious approach to their spending patterns.

Consumer Brands

Contrary to anticipations, the market’s performance during the quarter fell short of expectations. Many key product categories experienced volume contractions on a year-on-year basis, while consumption was stagnant compared to the previous quarter. The heightened utility prices had a pronounced effect on consumer spending, affecting the offtake in both modern and general trade channels. This situation was exacerbated by adverse weather conditions, which further impacted consumer income and foot fall to outlets.

The stationery market continued to become increasingly competitive, with all market participants gaining ground through improved range availability and aggressive price competition. Amidst the increasing pressure on consumer spending power, the market witnessed many new entrants in the value-for-money segments where a high traction was observed.

Despite the Government’s efforts to provide essential food items to low-income communities at subsidised rates, inflation in Bangladesh persisted, exceeding 9 per cent, and disproportionately impacting the underprivileged communities. Amidst the strained economic environment, the trend of consumers shifting towards more affordable alternatives continued into the quarter under discussion, causing a decline in the hair oil market.

The cumulative revenue reported for the Consumer Brands Sector witnessed a growth of 19.9 per cent to reach Rs. 22.6 billion while the operating profits reported a growth of 37.0 per cent due to reduced raw material prices, improved productivity and stable exchange rates. In line with the growth in operating profits and lower finance costs earings for the period witnessed a growth of 74.9 per cent to reach Rs. 2.0 billion.

The Sector reported a revenue of Rs.11.5 billion for the quarter, a growth of 13.9 per cent over last year driven by the performance of both the Home and Personal care and Learning Segments. The earnings improved by 67.3 per cent to surpass the Rs 1.0 billion mark due to over 50 per cent reduction in finance cost under improved working capital base, along with reduction in key raw material prices.

Home and Personal Care

Despite the decline in the overall industry demand, the company augmented its market presence, bolstering its outreach through the addition of over 5,000 outlets during the period, and fulfilling consumer needs. Prices were maintained in line with the market, while strengthening the value prepositions to secure higher market share in key segments, notably within the domains of baby care and feminine hygiene. With the expansions via pharmacy and beauty channels, revenue from the beauty segment under the ‘Prasara’ and ‘Vivya’ brands experienced significant growth during the quarter. ‘Prasara’ also introduced its latest addition to its comprehensive total solution portfolio, the body purifying tonic, during the quarter. The business continued to invest in multiple efficiency improvement and supply chain optimisation initiatives with a view of improving agility and consumer centricity.

‘Baby Cheramy’ was recognised as the “Best Baby Care Brand” in the ‘Retail Category’ at the prestigious Global Brand Awards 2023, a reflection of Baby Cheramy’s unwavering position as the undisputed market leader in the country.

Learning Segment

Despite the heightened competition in the market, the Learning Segment effectively maintained its leading market position with volume-led growth. In response to the evolving consumer preference for value-driven choices, the Learning Segment extended its ‘Homerun’ stationery line by incorporating books into the product portfolio, providing an accessible and cost-effective range for consumers.

Consumer Brands International

Despite ongoing challenges stemming from the increasing strain on disposable incomes and a demanding economic environment, the business in Bangladesh demonstrated notable resilience, achieving double-digit volume-led growth. Expanding on the recent launch of the cost-effective ‘Kumarika 150 ml’ variant, the business further diversified its product portfolio by entering the pure coconut hair oil market with the introduction of ‘Kolombo,’ a product tailored to cater to this specific segment.

The heightened emphasis on expanding the export portfolio within the Home and Personal Care and Learning segments has consistently advanced, with noteworthy developments such as the introduction of ‘Kumarika’ featuring a specialised SKU, ‘Kumarika Cooling Oil’, in the Middle East. Furthermore, there has been substantial advancements in the realm of Original Design Manufacturing, particularly in specific regions within East Africa.

Healthcare

The healthcare landscape continued to face heightened difficulties, including shortages of medicines and migration of doctors and other healthcare workers, which placed considerable strain on the healthcare ecosystem. Disruptions in the regulatory and procurement processes of the Government healthcare system led to the public having limited access to quality medications and medical care. The double-digit contraction witnessed in the preceding quarter in the private market eased in the quarter under discussion mainly due to the traction in essential categories. Profit margins remained under pressure due to price reductions mandated by the National Medicine Regulatory Authority (NMRA) to align with the exchange rate of Rs. 295 per dollar, with no subsequent adjustments made to account for adverse movements in exchange rates. Industry stakeholders are persistently advocating for a transparent pricing mechanism that accurately reflects the cost structure in a timely manner.

The cumulative revenue for the Sector increased by 10.4 per cent to reach Rs. 35.6 billion driven by the Pharmaceutical Businesses of the Group. While the sector’s operating profits of Rs 2.7 billion increased by 6.3 per cent in line with revenue growth, this upward momentum was not translated into earnings, primarily due to escalating finance costs related to funding working capital in the Pharmaceutical Busiensses.

The Sector posted a revenue of Rs. 17.9 billion for the quarter, a growth of 8.4 per cent over last year, while the operating profits increased by 16.0 per cent to Rs. 1.6 billion. However, the benefit was negated under heightened finance costs, to report an earnings growth of 6.0 per cent.

Pharmaceuticals

The Pharmaceutical Distribution Business introduced 22 new products into the market in both pharmaceutical and surgical segments. New launches were made in the much-needed spaces including diabetes and cancer related medication. The business actively pursued various initiatives aimed at optimising its working capital position, resulting in a significant reduction in the working capital base compared to the last financial year.

In line with its vision to make premium healthcare affordable, the Pharmaceutical Manufacturing Arm of the Group, continued to focus on Morison branded portfolio posting over 70 per cent volume growth for the period, driven by the success of several recent product launches. During the quarter, Morison ventured into third party manufacturing by producing Sitagliptin, a medication used in the treatment of type 2 diabetes, on behalf of a prominent global player. ‘Homagama’ factory crossed the 50 per cent capacity utilisation primarily as a result of its allocation for fulfilling Government orders.

Hospitals

Revenue from key anchor specialties including Nephrology, Cardiology and Gastro-Enterology continued to witness double digit growth for the period. Despite a decline in surgical admissions, the Hospitals Business sustained its overall occupancy levels at both facilities, surpassing 55 percent under improved medical admissions.

Mobility

The Maritime Sector continued to face challenges as both import and export activities to and from the country encountered the effects of a global economic slowdown. However, there has been relative improvements under eased import restrictions and growing momentum of merchandise exports. Stemming from lower base from the previous year, the Port of Colombo observed a notable upturn, with transshipment and total throughput volumes registering growth of 9.5 per cent and 7.7 per cent respectively.

Aviation Industry witnessed relative improvements on a quarter-on-quarter basis in both the cargo and passenger segments. The growth in cargo was supported by the relative improvements in exports, while the passenger sector benefited from increased business and student traffic.

The Mobility Sector posted a cumulative revenue of Rs 787.0 million, a decline of 13.8 per cent in comparison to the same period last year while the earnings witnessed a higher decline of 53.9 per cent mainly due to the reduced finance income for the Sector. Accordingly, the quarter witnessed a decline of 19.7 per cent and 59.9 per cent to reach Rs 376.2 million in revenue and Rs.136.8 million in earnings under challenging operating conditions.

Leading with ESG

The Group remained dedicated to addressing plastic pollution by promoting responsible plastic waste management and supporting the national Extended Producer Responsibility (EPR) initiative. Partnering with Eco Spindle, the Group established two baling sites in Ampara and Colombo, ensuring the responsible disposal of over 350,000 kg of plastic annually.

During the quarter, the Group continued efforts to empower families for aspire for a better tomorrow. Through its Feed a Future initiative, conducted in partnership with Hoppers London, 1,097 protein packs were distributed to children and families across 33 ‘Piyawara’ preschools in 11 districts. The 63rd ‘Piyawara’ Pre School was added to the national network, benefiting 50 children from underserved communities in Kegalle. The Group created quality education experiences and equal learning opportunities to over 74,000 children, teachers, and parents. The Group’s initiatives to tackle period poverty involved educating 12,000 Sri Lankan women on menstrual health, and over 3,000 diabetes tests were conducted to raise awareness and assist in the early management of diabetes in communities.

Outlook

While Sri Lanka’s economy displays certain signs of recovery, with moderating inflation, stabilized exchange rates, and efforts to rebuild reserves, the broader macroeconomic and policy landscape continues to present formidable constraints. Challenges persist in terms of consumer sentiments and constraints on disposable income will continue to pose obstacles for businesses across the industries.

Hemas maintains a cautious yet optimistic outlook, drawing upon its expertise to ensure resilience as the country navigates the complexities of the economic recovery phase. The Group’s strategic objectives remain closely aligned with its purpose, propelling innovative solutions to address the continually evolving consumer landscape.

In our forward-looking approach, Hemas will continue to grow in Consumer and Healthcare spaces while greater emphasis is placed on the development of core capabilities of localised innovation, internationalisation, and the establishment of a distinctive Sri Lankan pharmaceutical brand. Moreover, the Group is focused on simplifying its operations in order to enhance efficiency and agility.

October 4, 2023

Partners with Sri Lanka College of Paediatricians and the National Secretariat for Early Childhood Development to launch nationwide campaign

In response to the escalating violence against children in recent years, Hemas Outreach Foundation (HOF) partnered with Sri Lanka College of Paediatricians and the National Secretariat for Early Childhood Development to launch the first-ever nationwide campaign aimed at empowering and educating preschool children to safeguard themselves against abuse.

At a ceremony held at Temple Trees to mark World Children’s Day, under the patronage of Prime Minister Dinesh Gunawarende, a poster, jingle and video was launched focused on providing an essential tool to protect and empower the youngest members of our society.

Around the world, awareness about ‘good touch’ and ‘bad touch’ has been cultivated among young children, and HOF is now bringing this crucial message to Sri Lanka. The program’s main goal is to educate children about what to do when confronted with abusive behaviour, safe and unsafe touches, going to a parent or another trusted adult if they are faced with an unsafe situation.

Speaking on the initiative, Shiromi Masakorala, Executive Director, Hemas Outreach Foundation and AYATI Trust Sri Lanka said, “We believe that empowering preschool children is crucial in preventing abuse. The jingle, accompanied by actions, will be incorporated into daily routines at all preschools to teach children how to respond in critical situations. Additionally, all 19,000 plus preschools across the country will display these posters, ensuring a visual presence. These communication materials have been thoughtfully developed in both Sinhala and Tamil to reach all communities.”

The catchy jingle and the informative video will equip preschool children with age-appropriate knowledge about their safety. The video, titled ‘A Lesson from Roshan Mama,’ features renowned cricketer turned social worker, Roshan Mahanama sharing valuable guidance on how children can protect themselves from sexual abuse. The three key messages conveyed are to say NO to any unacceptable behaviour by an adult, to RUN, and to INFORM a trustworthy adult.

With violence against children having increased in the past few years, it is essential to take urgent action to protect preschool children who are especially vulnerable to sexual abuse due to a lack of awareness and knowledge.

The jingle will become a daily routine in all preschools, recited by the children themselves. Training sessions will also be conducted at the district level, involving all stakeholders, including preschool teachers, Early Childhood Care and Development officers, and parents.

“By providing them with the knowledge and tools to protect themselves, we can empower and create a safer environment for all children. We are deeply grateful for the guidance and support of our partners to ensure our youngest and most vulnerable members of society can stand up against abuse,” Masakorala added.

Prof. Asvini D. Fernando, Chairperson of the Child Protection Committee of Sri Lanka College of Paediatricians (SLCP) stated, “The message developed by the members of the Child Protection Committee of the SLCP was much needed due to the alarming increase in the number of reported cases of violence against children in the country. It is crucial that we implement programs to empower children to safeguard themselves. As Paediatricians, we have over the years witnessed various forms of violence against children, and firmly believe that prevention can be achieved through education. We have thoroughly examined global programs and have produced this jingle, poster, and video after careful analysis of the need. We also emphasize the importance of age-appropriate communication and are pleased that the Hemas Outreach Foundation stepped forward to develop this much-needed material together with the CPC of the SLCP, to empower the lives of children commencing from the preschool years.”

The Hemas Outreach Foundation is a charitable trust established under Hemas Holdings PLC. The foundation has been leading the group’s efforts to enrich lives through transformative social responsibility. Its mission is to create an inclusive world where no child is left behind by providing world-class pre-school education and high-quality therapeutic intervention to differently-abled children, while eradicating stigma related to disabilities.

HOF is dedicated to Early Childhood Care and Development (ECCD) in Sri Lanka through its ‘Piyawara’ program, conducted in partnership with the Ministry of Women and Child Affairs since 2002. With 63 ‘Piyawara’ preschools currently operational across the country and more in the pipeline, holistic development in young children is a cornerstone of this program. To-date the Foundation’s collective efforts have positively impacted more than 100,000 lives of children and families across the country. It is managed by an eminent board of trustees and audited by EY Sri Lanka.

September 5, 2023

Hemas x Hatch: Slingshot program to support 75 startups in the next three years

September 5, 2023. Colombo, Sri Lanka: Hemas Group, a diversified corporate with focused interest in Consumer Brands, Healthcare and Mobility, is partnering with Hatch to deliver a corporate innovation program as a part of their 75-year celebrations. This collaboration aligns to Hemas Group’s focus to explore ‘Open Innovation’ as a part of their corporate journey.

Speaking on the partnership, Group CEO of Hemas Holdings, Kasturi Chellaraja Wilson said, “Through this partnership, we see significant potential for Sri Lankan startups, with the business community coming forward to create a new ecosystem by providing access to essential infrastructure, knowledge, and capital. As we mark 75 years of enriching our communities, we are committed to invest in the country’s future through this initiative and reinforce our commitment to delivering innovative solutions that empower families.”

Speaking more about Hatch’s vision, the Co-Founder and CEO Brindha Selvadurai Gnanam explained, “We believe that entrepreneurs are catalysts for economic development and that collaboration drives innovation. Hatch provides a comprehensive solution for startups through our bespoke programs, extensive mentorship support, and like-minded community”.

As an initial step of the ‘Hemas x Hatch: Slingshot’ program, a call for applications was extended for post-revenue startups operating in selected scalable industries such as Education & EdTech, FMCG, Healthcare, and Logistics. The program kick started with the selection of 25 post-revenue startups who were invited to participate in a two-day intense boot-camp on 26^th and 27^th of August 2023.

During the programme, entrepreneurs were provided a high-quality immersive learning experience by industry professionals who provided in-depth perspectives into some of the fundamental topics in a startup journey. This included Fine tuning your Value Proposition, Creating a scalable Business Model, Fundraising 101, International Growth Strategies and Navigating the journey of an entrepreneur. This comprehensive approach ensured that startups not only solidified their core business concepts but also gained the essential tools for expansion and growth.

At the end of the Bootcamp, the 25 startups had the opportunity to pitch their businesses to a panel of judges, out of which 8 have now been selected to advance to the next stage of the ‘Hemas x Hatch Slingshot Accelerator’ Program.

Over the next few months, the corporate accelerator implemented by Hatch, leveraging the extensive domain expertise and resources of the Hemas Group aims to refine the concepts ideas of the startups, broaden their perspectives, and provide them with potentially game-changing opportunities that facilitate their transition from startups to scale up.

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Hemas takes action to safeguard preschool children from abuse

Hemas Partners with Hatch to Support Sri Lankan Innovation and Entrepreneurship