Hemas Holdings PLC has reported a consolidated revenue of Rs. 25.5 billion for the first quarter of FY25, ending June 30, 2024. Despite facing a challenging economic environment, the Group achieved operating profits of Rs. 1.9 billion and earnings of Rs. 0.9 billion during this period.
The revenue decline compared to the previous year was primarily attributed to downward price adjustments and reduced consumer spending, further impacted by extended holidays in the early part of the quarter. Nevertheless, the Group’s profitability margins were bolstered by efficiency improvements and reduced finance costs.
In the Consumer Brands sector, Hemas recorded revenue of Rs. 8.9 billion, with operating profits of Rs. 0.8 billion and earnings of Rs. 0.6 billion. Despite a revenue drop, margins improved due to enhanced supply chain efficiencies and productivity measures. The sector saw success in personal care, notably in the Baby and Feminine Hygiene segments. Innovations such as the launch of Baby Cheramy Liquid Soap and new Goya Soap variants contributed to its strong market presence. The ‘Atlas’ brand maintained its leadership position across both premium and value-for-money segments, while ‘Kumarika’ grew its market share with new value-for-money and pure coconut oil products. The ‘Actisef’ brand remained a key part of the portfolio.
The Healthcare sector reported revenue of Rs. 16.0 billion, operating profits of Rs. 1.3 billion, and earnings of Rs. 0.8 billion. Profitability was enhanced by overhead optimization, improved working capital management, and lower interest rates. Despite market contraction and regulatory price reductions, the sector sustained its leading market position.
CEO Ravi Jayasekara highlighted the Group’s resilience and operational effectiveness in navigating the challenging economic landscape, underscoring the strategic initiatives that supported profitability during the quarter.