Revenue growth was primarily driven by enhanced performance in our healthcare and mobility sectors. HHL registered an operating profit of Rs. Adjusting for our investments in growing our businesses, the Atlas acquisition and asset disposals indicate a revenue growth of Investing for Growth in Personal Care and Digital We have made significant investments in growing our businesses which have reduced our operating profits for the year.
Fitch expects demand for school stationery to grow over the medium term, supported by government and private-sector investments in the education sector and rising per capita income in the country. Expansion Limits Leverage Improvement: We estimate Hemas will generate around LKR4 billion per annum in cash flow from operations in the next few years but this may be insufficient to fully cover the planned capex and shareholder returns.
We do not expect an improvement in company leverage in the medium term amid higher borrowings and a moderating operating performance. We believe Hemas may have to keep investing in its Bangladesh distribution network and marketing efforts to support its bigger operational scale and counter competition, which would keep margins below historical levels in the medium term.
Domestic margins may also remain pressured due to a pickup in input costs and currency depreciation, which the company may find difficult to fully pass on to customers amid weak demand. However, steps taken by the company to streamline its supply chain operations are likely to generate cost savings to offset margin pressure to an extent.
Leisure Slowdown to Persist: We expect the drug distribution arm to continue winning market share from distributors exiting the market on price regulations, primarily on branded drugs. We expect the pharma segment and its hospital chain to continue growing in the medium term, supported by a rapidly ageing population, rising incidence of non-communicable diseases and undersupply in public healthcare services.
However, the hospital sector may face regulatory pressure on pricing of certain services. Hemas plans to double its capacity by FY20 to cater to this demand. Hemas currently sells most of its output to the government under a long-term buyback program and we believe the company will be able to secure a similar contract for most of the new capacity.
Any excess capacity can be used to produce its own branded products or for contract manufacturing. The company is setting up a container yard and integrated logistics park to cater to the increased transhipment activity at the Colombo port and the growing demand for third-party logistics service.
We do not believe the recent de-regularisation of foreign ownership in ship agency and freight forwarding businesses will have an immediate impact on the sector as it will take time and effort for foreign shipping lines to set up operations with similar service offerings provided by their local partners such as Hemas.
Hemas is rated three notches above Sunshine due to its stronger business profile stemming from substantially higher cash flows from its defensive pharmaceutical and FMCG businesses and its larger operating scale.
We do not expect Hemas to generate positive free cash flow in the next 12 months due to working capital investments, high capex and the acquisition of Atlas but its large cash reserves at hand places the company in a strong liquidity position.
Hemas has another LKR1. About Us LBO is the pioneer and leader in online business and economics news in Sri Lanka, LBO brings you a more comprehensive online news experience, integrating a host of interactive tools to keep you better informed.
You can receive time-sensitive updates via email messaging. Enter your e-mail address and other details to subscribe to our newsletter.This page provides a brief financial summary of Hemas Holdings PLC as well as the most significant critical numbers from each of its financial reports.
Hemas Southern Hospital (Pvt) Limited is a subsidiary of Hemas Holdings PLC.
One of Sri Lanka's top lived companies with strong financial track record of creating exceptional shareholder value. One of Sri Lanka's top lived companies with strong financial track record of creating exceptional shareholder value.
Learn about working at MAS Linea Aqua. Join LinkedIn today for free. See who you know at MAS Linea Aqua, leverage your professional network, and get hired.
Hemas Holdings PLC, a company listed in Colombo Stock Exchange operates in Healthcare, Consumer Products, Leisure & Mobility (Logistics) with a vision, 'to be Title: Chief Digital Officer at HEMAS .
Hemas Holdings PLC Stock - attheheels.com news, historical stock charts, analyst ratings, financials, and today’s Hemas Holdings PLC stock price. DOW JONES, A NEWS CORP COMPANY.
News Corp is a network of leading companies in the worlds of diversified media, news, education, and information services. DOW JONES. Hemas Holdings PLC Hemas Group is a 63 year of corporate giant founded in by Sheikh Hasannally Esufally as Hemas (Drugs) Ltd.
From this humble beginnings, Hemas has grown into a 37 billion rupee corporate empire with interests in pharmaceutical manufacturing and retail, hospitals, leisure, travel, transport and logistics and has a large.