CEO’s Review Q4 – 2017/2018

Robust Revenue Growth but Operating Profit Declines as Hemas Acquires and Expands

Hemas Holdings PLC (HHL) reported full year consolidated revenue of Rs.50.9Bn, an increase of 17.2% over last year for the period ended March 31, 2018. Revenue growth was primarily driven by enhanced performance in our healthcare and mobility sectors. HHL registered an operating profit of Rs.4.2Bn during FY 18, a 11.3% y-o-y decline together with earnings of Rs.2.7Bn, 23.0% y-o-y decline.  Adjusting for our investments in growing our businesses, the Atlas acquisition and asset disposals indicate a revenue growth of 14.9% while operating profit and earnings remained flat.

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. These have included, commencing Home and Personal Care (HPC) operations in West Bengal, India, investments in digital health start-ups, and a major profit improvement project for our Home and Personal Care business. These investments have reduced operating profit by Rs.397.9Mn.

Acquisition of Atlas

We acquired Atlas Axillia, Sri Lanka’s leading school and office stationery business, in January 2018. The seasonal nature of this business with Q4 of the financial year being low season coupled with the loss of interest income from rights issue proceeds and other cash reserves used to fund the acquisition have impacted our performance. We have also had an increased tax charge resulting from higher dividend tax as we have up streamed dividends in part to finance the acquisition.

As a result, the acquisition has had a negative impact on operating profit of Rs.197.0Mn and on earnings of Rs.295.1Mn. We have now fully utilized the capital raised in the rights issue.

Core Business Performance

Adjusting for the costs associated with these investments and acquisition including one off gains from asset disposals in both the current and previous years indicate our performance in FY 18 of revenue growth of 14.9% while operating profit and earnings remained flat.  This has been partly due to broader macroeconomic factors with increased inflationary pressure and the impact on consumer purchasing power of increased VAT and prolonged drought and flooding in the earlier part of the financial year. We have also had mixed operating performance across the Group with Leisure and Travel and HPC Bangladesh underperforming, while price controls on pharmaceuticals continues to put pressure on operating margins. Conversely, our HPC Sri Lanka business has performed robustly against the backdrop of a declining Personal Care market and we have seen good growth at Hospitals and Logistics and Maritime.

Looking at the performance of our major businesses in more detail.

Consumer Brands

The consumer sector comprising of Home and Personal Care and School and Office Stationery posted a revenue of Rs.17.4Bn during FY 18, indicating a growth of 8.6% over the previous financial year, revenue growth excluding Atlas was 3.6%. Operating profits stood at Rs.1.4Bn, 31.3% YoY decline, a 22.7% decline excluding Atlas. Our HPC Sri Lanka business reported steady growth in key personal care categories with market shares being maintained across most major categories. We witnessed early signs of revival in consumer sentiment in Q4. Excluding costs associated with our profit improvement initiative, profit growth was in line with expectations in Sri Lanka but was depressed overall on account of our Bangladesh operations and the seasonality impact from Atlas.

We have made significant investments in the growth of our core consumer business this year. During FY 18, HPC, expanded its portfolio of consumer products both here and in Bangladesh by way of new launches, relaunches and improved product formulation.  As we strive to improve our operating margins in HPC, we have engaged with a major consulting firm to assist us in these efforts. The costs of this exercise have been incurred in FY18 while the benefits are starting to accrue in FY19.

Our HPC business in Bangladesh experienced a challenging year during FY18. During first half, HPC Bangladesh restructured its sales and distribution network which had an impact on sales growth and profitability compared to previous financial year. Continuous investment behind the brand has been made as the competitive intensity in the market has increased. In December, we relaunched Kumarika hair oil with an improved formulation. We have also entered the herbal beauty soap category in Bangladesh and continued our regional expansion launching Kumarika hair oil in West Bengal.

Healthcare

Our healthcare sector delivered strong financial performance registering a consolidated revenue of Rs.23.1Bn, a YoY increase of 22.6%, driven by the performance of our Pharmaceutical distribution and hospitals. However, profitability in pharmaceuticals remains challenging due to price regulation and devaluation of the rupee. During the year, we expanded our healthcare footprint with Hemas Pharmaceutical and Morison both entering Myanmar to distribute Rx and OTC products.  With a view to drive digital initiatives, including finding better ways to reach our customers through E–Commerce across our evolving healthcare businesses, we have made a number of investments in early stage technology businesses in the digital healthcare space.

Our hospitals have shown good performance with higher occupancy levels and increased focus on surgeries contributing towards a revenue growth of 16.4%. We also see improved contributions from our laboratory network of 34 diagnostic centres across the country.

Morison’s posted a revenue of Rs.3.8Bn and operating profit of Rs.598.1Mn during FY 18. As we streamline our core operations at Morison’s, underlying operating profit excluding exit from certain businesses and agencies stood at Rs.541.1Mn, a y-o-y decline of 2.0%. Morison’s Healthcare segment recorded an underlying operating profit of Rs.393.4Mn, an increase of 5.0% over last year.

 

Logistics and Maritime

 

Hemas Logistics and Maritime recorded revenue growth of 45.7% over last year with revenues of Rs.2.8Bn. During the year, Spectra, our logistics joint venture with GAC and McLarens has shown improved results, mainly driven by the 3PL operations. Spectra expanded operations with a new container yard in the Muthurajawela Industrial Zone on January 22, 2018. Construction of the new warehousing complex is on track to be completed in early FY 2019.

 

Leisure Travel and Aviation

 

Our Leisure, Travel and Aviation (LTA) business posted a total revenue of Rs.4.2Bn, reflecting a decline of 3.0% over last financial year.  Overall profitability of the LTA sector continued to be below expectations stemming from poor performance in our inbound travel arm primarily caused by a contraction of its Asian market segment and compounded by a decrease in arrivals during the summer. Serendib Hotels improved performance in Q4 by attracting higher volumes during the peak season. Anantara Peace Haven Tangalle performed comparatively better than last year, however losses incurred year-to-date have impacted Group profitability. Capitalizing on the increasing number of discerning travelers who are looking for authentic experiences in a more intimate setting, Serendib Hotels entered the villa space by acquiring a 51.15% stake in Lantern, a position it increased to a fully owned subsidiary in March 2018.

 

Overview

FY 2018 has been challenging, with robust revenue growth in tough economic conditions and depressed earnings being seen throughout the financial year. Investing for a better future is a priority and we have made significant investments and acquisitions. We continue to work hard at translating these investments into improved profitability in 18/19.

Steven Enderby

Group Chief Executive Officer

 May 25, 2018

Colombo

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CEO’s Review Q3 – 2017/2018 : Hemas Holdings PLC reported a consolidated revenue of Rs.35.6Bn for the first nine months, up by 11.4%

Hemas Holdings PLC (HHL) and its subsidiaries reported a consolidated revenue of Rs.35.6Bn; a year-on-year (YoY) growth of 11.4% and profit attributable to equity holders of Rs.2.1Bn, a decline of 12.7% for the nine months ending December 31, 2017. Cumulative operating profit for the first nine months of the FY18 stood at Rs.2.9Bn; a YoY decline of 10.8%. Our double-digit growth in consolidated revenue is preliminary driven by healthcare and mobility sectors. Despite consolidated revenue growth, our Bangladesh consumer business, pharmaceutical distribution, leisure and travel segments are all facing margin challenges resulting in reduced group earnings. Domestic consumer demand, mainly in the rural sector, remains soft impacted by higher headline inflation, poor climatic conditions persisting in parts of the country, lower levels of inward remittances and the VAT increase. While recognising the pressures this exerts on operating profits we continue to invest in expanding our portfolio of consumer products both here and in Bangladesh, developing our digital footprint and driving profit improvement in our home and personal care business.
On January 19, 2018, we acquired 75.1% of Atlas Axillia Company (Private) Limited, for a purchase consideration of Rs.5.7Bn. Atlas holds a leading position in School and Office with over 40% market share and has been voted the most loved brand in Sri Lanka on multiple occasions, including the most recent award in 2017. With the acquisition of Atlas, Hemas is consolidating its leadership in Sri Lankan consumer brands and we look forward to bringing our brand building excellence to this new category. The business has a strong profit and dividend track record. Atlas will be the third largest business in the Hemas Holdings Group and will operate independently as a subsidiary of Hemas Holdings PLC. Based on the historic performance of Atlas and HHL, we anticipate Atlas will add approximately 15% to our revenues. During FY17/18 we will consolidate only from the date of acquisition and will consolidate on a full year basis in FY 18/19. It will also introduce increased seasonality to our earnings due to the importance of the back to school season in Q3 of the financial year. Following the acquisition, we have fully utilized the proceeds from the rights issue raised in 2015.
The consumer sector posted a revenue of Rs.12.4Bn for the first nine months ending December 31, 2017, indicating a growth of 1.0% over the previous financial year. Year-to-date operating profits were Rs.1.4Bn, 18.6% YoY decline. We saw signs of recovery in the consumer segment during Q3 with a revenue growth of 8.6% for the three months in consideration despite challenging domestic macro environment seen in the first six months. Our Sri Lanka business reported steady growth in key personal care categories with market shares being maintained across most major categories. However, overall profitability growth was below expectations on-account of our Bangladesh operations. We continue to work hard on improving profitability in Bangladesh. We have completed the restructure of our sales and distribution network and are now investing behind our market leading brand Kumarika. We relaunched Kumarika with an improved hair oil formulation in December.
Our consolidated healthcare sector revenue stood at Rs.16.6Bn, a YoY increase of 19.4% whilst operating profit and earnings grew at 14.5% and 19.3% during the past nine months ending December 31, 2017. Our healthcare sector was the main contributor to growth year-to-date. Hemas pharmaceutical distribution operation registered strong revenue growth increasing its market leadership position owing to new

additions to our pharmaceutical portfolio. However, profitability in the industry remains challenging due to price regulation and devaluations in the wake of depreciation of the rupee. As a result, pharmaceutical distribution profitability was negatively impacted. On December 15, 2017, the Government approved an increase of 5% on the Maximum Retail Price of 48 molecules that were under price control.
Our Hospitals have performed well throughout the financial year to date. Higher occupancy levels and increased focus on surgeries have contributed towards a revenue growth of 21.2%. We are also seeing growth from increased specialised surgeries as we continue to expand our services, push to higher levels of clinical excellence and generate improved performance from investments made. We also see improved contributions from the laboratory network.
Morison’s posted a revenue of Rs.2.8Bn and operating profit of Rs.503.6Mn for this interim period. Morison’s underlying operating profit growth, excluding Agro, which we exited during the latter part of FY17, was 38%. Growth against the previous year was primarily driven by pharma manufacturing and pharma distribution. In December, Morison PLC ventured into Myanmar with distribution of its baby diaper brand “Bunnies”. This is the initial step towards establishing Morison PLC’s presence in a regional market.
Hemas Logistics and Maritime recorded revenue growth of 52.2% over last year with revenues of Rs.2.1Bn. This growth has been driven by both our agencies and logistics. During the year, Spectra, our logistics joint venture with GAC and McLarens has shown improved results, mainly driven by the 3PL operations. Spectra Integrated logistics expanded operations with a new state-of-the-art container yard in the Muthurajawela Industrial Zone on January 22, 2018. Construction of the new warehousing complex is on track to be completed in early FY 2019.
Our Leisure, Travel and Aviation business posted a total revenue of Rs.2.6Bn, reflecting a decline of 11.0% YoY for the nine months under consideration. Our hotel portfolio performed negatively resulting from softening room rates and a rise in operating expenses. As a result, operating loss for the segment during the first nine months stood at Rs.34.7Mn, a 112.0% decline in YoY operating profitability. During Q1, overall arrivals to Sri Lanka witnessed a moderation in growth due to the negative publicity and travel warnings due to flooding and landslides in May. After two quarters of decline in revenue growth, Serendib Hotels reported stabilised revenue resulting from increased occupancies across the hotel portfolio. Lantern, the latest addition to our hotel portfolio contributed positively towards revenue. Travel and Aviation segment indicated a decline in revenue of 4.2%. Overall profitability of this segment continued to be below expectations stemming from poor performance in inbound travels and hotels. Anantara Peace Haven Tangalle performed comparatively better than last year on occupancy, however losses incurred year-to-date have impacted Group profitability.
Our technology business, N*Able generated strong revenue growth due to the successful completion of three major projects during the quarter in contrast to its weak start in FY17.
FY 2018 has been a challenging year with the trend of good revenue growth in tough economic conditions but depressed earnings continuing throughout the nine months.

Steven Enderby
Chief Executive Officer

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HEMAS INTEGRATED LOGISTICS REBRANDED AS SPECTRA INTEGRATED LOGISTICS

Commences operations with a new state-of-the-art container yard in the Muthurajawela Industrial Zone

Colombo, 31st January 2018; Hemas Integrated Logistics known across the industry for its service excellence, proven track record and corporate backing, turned a new chapter in its journey when the company rebranded itself as Spectra Integrated Logistics. The rebranding was carried out as a result of Hemas going into partnership with GAC Sri Lanka which itself is a partnership between GAC Global and McLarens Holdings.

“Spectra Integrated Logistics is the union of two local giants of the shipping industry backed by a global logistics player,” commented CEO of Spectra Integrated Logistics Niranjan Nallaratnam. He further added that launching a common brand was “a strategic move to position ourselves as one of the biggest integrated logistics providers.”

The company is taking several giant steps towards expansive growth under the new brand including the establishment of a state-of-the-art container yard which will be followed by an ultramodern warehouse.

The new container yard is located in a 15 acre land within the designated logistics city in the Western Region Megapolis Masterplan Project – a locality promoted by the government as a logistics park between the Port of Colombo and the Bandaranaike International Airport. Strategically situated in the Muthurajawela Industrial Zone in Wattala, away from residential spaces, the new container yard will help the company double its existing capacity to serve the gamut of shipping lines operating in Sri Lanka.

With an investment of nearly US$ 20 million by Spectra Integrated Logistics, the new container terminal – which commenced operations following a soft opening on 22 January 2018 – is equipped with top notch modern equipment related to container handling, container repairing, container washing and container rigging to name a few.

This venture is a stepping stone for the company to create a centre of excellence in Sri Lanka in order to go out to the region, focussing mainly on Bangladesh and Myanmar in the Indian subcontinent. The new brand and container yard which targets most of the major shipping lines also seamlessly align with the prevailing expansion plans of Hemas Holdings. Along with the backing of its shareholders, the company is confident that the yard will be one of the most active of its kind in the country.

Scheduled to be in the second phase of Spectra’s operations, the company has already commenced building one of the largest distribution centres in Sri Lanka targeting pharmaceuticals, white goods and retail trade.

“With this facility and the gamut of freight and logistics services in our portfolio, Spectra Logistics is set to meet the growing demand for third party logistics services in Sri Lanka, brought about by the increase in global trade, as well as the increasingly important role that the country plays as a sourcing base in South Asia for international buyers, and to introduce the true benefits of supply chain solutions of global standards to Sri Lankan customers,” said Lars Bergstrom, Group Vice President, Asia Pacific & Indian Subcontinent of GAC Group.

To be commissioned in mid-June 2018, the warehouse will have a future focussed set up with a capacity of nearly 25,000 palette positions. The distribution centre will be designed in accordance with global industry standards with five chambers and seven high racking, in addition to electric material handling. The entire operation is further backed by proprietary software developed by GAC Global and supported by global IT centres in Singapore and Dubai.

With its existing clientele, shareholder backing and group synergies, the new warehouse is a justified and timely investment. The support of McLarens Holdings is also guaranteed with its associate businesses.

After the establishment of its warehouse facility, Spectra Integrated Logistics will further expand its portfolio with the addition of a distribution arm. Distribution services will be executed through a best in class transport management system with route and load optimisation. In addition, the company’s offerings will also extend to the digital domain where Spectra Integrated Logistics will take the helm to revolutionise the way logistics services are delivered using IoT.

Spectra Integrated Logistics is a Joint venture between Hemas Transportation Pvt Ltd and GAC Logistics Limited Sri Lanka.  Hemas Transportation Pvt Ltd is a subsidiary of Hemas Holdings PLC which is a listed conglomerate in the Colombo Stock Exchange with a focus on Fast Moving Consumer Goods, Healthcare, Transportation, and Leisure. GAC Logistics Sri Lanka is part of the GAC Group, a global provider of integrated shipping, logistics and marine services,  working in partnership with the McLarens Group.

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Hemas Consolidates FMCG position by acquiring Atlas—Sri Lanka’s most loved brand of 2017

19th January 2018, Colombo; Hemas Holdings PLC acquired 75.1% of Atlas Axillia Co (Pvt) Ltd, Sri Lanka’s leading School and Office brand, for a consideration of Rs. 5.7 billion. The existing shareholders of Atlas will retain a stake of 24.9% in the company post-acquisition.
Nirmal Madanayake, Managing Director of Atlas Axillia Co. said “Atlas Axillia is on a great journey of growth and we were keen to take our organisation to the next level. We went through a rigorous process to find the right partner, and we saw a great business and cultural fit with Hemas. Both our organisations have a rich history of bringing loved brands to Sri Lankan homes and have served the Sri Lankan consumer with high quality, affordable and innovative products. Both Atlas and Hemas have always felt that our most valuable asset is our team and we strive to empower the people in our organisation. I am deeply proud of the Atlas journey over the past 58 years and of the place that this brand holds in Sri Lankan consumers’ hearts. As we embark on the next phase of growth, we are delighted to have a high quality partner with similar values.”
Hemas Holdings PLC is expanding its presence in the Sri Lankan consumer market by acquiring one of the most respected local brands with market leading positions for its notebooks, pens, pencils and colour products. Today’s consumers seek out premium, innovative and design-oriented products and Atlas has demonstrated its ability to do this repeatedly, resulting in its unique position as the most loved School & Office brand” said Steven Enderby, Group Chief Executive Officer of Hemas Holdings PLC. “Consumer stationery is a new and exciting category for Hemas with significant potential and we will bring the best of our consumer-focussed mindset to deliver superior value to Atlas’ many customers across the island. We look forward to working closely with the team at Atlas and building on their considerable success.”
Atlas will become the third largest business in the Hemas Group and will operate independently as a subsidiary of Hemas Holdings PLC. Hemas aims to continue to drive Atlas’ excellent track record of sales growth; and strengthen its market leading position, highly effective lean manufacturing and enviable dividend track record. The Group will cross-fertilise brand and marketing insights between the business and its Home and Personal care portfolio as well as deliver route to market excellence through our two significant island wide sales and distribution networks. In addition, Hemas will look to reduce funding costs and enhance talent attraction and development at Atlas.
In April 2015 Hemas announced a Rights issue of Rs. 4.1 billion to be invested in FMCG and Healthcare businesses. During the first quarter of 2017, Hemas allocated Rs. 1.45 billion for the construction of the new Morison PLC pharmaceutical plant. The entire proceeds from the Rights issue have now been utilized with the acquisition of Atlas Axillia.

Atlas Axillia Co., formerly known as Ceylon Pencil Company (Pvt) Ltd. was founded in 1959 by the Madanayake Family. The brand “Atlas” has created a strong connection to the Sri Lankan consumer, fueled by a passion for providing school-children with the essential tools for success has been voted Sri Lanka’s most loved brand 2017 (No.1). The Company is the market leader in school stationery and notebooks, pens, pencils and colour products, with products retailed in over 70,000 outlets across Sri Lanka. Atlas Axillia brands include “Atlas”, “Zebra X”, “Homerun” and “Innov8”. The Company employs 1,300 people and operates two production facilities in Peliyagoda and Kerawalapitiya.
Hemas Holdings PLC, founded in 1948 is Sri Lanka’s leading Consumer and Healthcare business with further interests in Leisure and Mobility.
A-Sec Capital (Pvt) Ltd, the investment banking affiliate of Asia Securities (Pvt) Ltd, acted as arranger and sole advisor to the Seller on this transaction.
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Media Contact: Ruwani Hettiarachchi, Director Strategy, Hemas Holdings PLC.
Tel: 077 351 5305

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CEO’s Review Q2 2017/2018: Hemas Achieves Revenue Growth of 11.6%

Hemas Holdings PLC (HHL) and its subsidiaries achieved a consolidated revenue of Rs.23.0Bn; a year-on-year (YoY) growth of 11.6% and profit attributable to equity holders of Rs.1.4Bn, a decline of 8.0% for the six months ending September 30, 2017. Year to date operating profit reached Rs.1.96Bn; a YoY decline of 5.4%. Despite consolidated revenue growing aided by higher turnover from the healthcare and mobility sectors, group earnings indicate a decline due to our Bangladesh personal care business, pharmaceutical distribution, leisure and travel all facing margin challenges. Further cost escalations were experienced as we invest in expanding our consumer portfolio and build new pharmaceutical and logistics facilities. Domestic consumer demand remains soft impacted by higher headline inflation, drought conditions persisting in parts of the country, and headwinds from currency fluctuations and VAT increase.

The home and personal care sector revenue of Rs.8.1Bn for the first six months ending September 30, 2017 indicates a decline of 2.6% over the previous financial year. Operating profits were Rs.968.7Mn, 16.4% YoY decline. Despite the challenging domestic macro environment, our Sri Lanka business reported steady growth in key personal care categories with market shares being maintained across most major categories. The decline in operational performance has been impacted by our Bangladesh operations where bad weather conditions during Q1, the restructuring of our sales and distribution network, increased competition and the expansion of our portfolio resulted in lower margins. We are now seeing signs of increased stability in our revamped sales and distribution network in Bangladesh and have introduced the first ever marbleised herbal-beauty soap “Kumarika Herbal Soap” in Bangladesh during August 2017. With regard to new markets, we incurred start-up losses in West Bengal as we commenced operations.

During the six months under review, our consolidated healthcare sector registered a revenue of Rs.10.6Bn, a YoY increase of 16.5% whilst operating profit and PAT grew at 8.0% and 18.0%. Our healthcare sector was the main contributor to Group growth year to date. Hemas pharmaceutical distribution operation registered strong revenue growth, increasing its market leadership position. However, profitability in the industry remains challenging due to price regulation and devaluations in the wake of depreciation of the rupee. As a result, pharmaceutical distribution profitability was negatively impacted. In order to drive future growth, Hemas Pharmaceuticals ventured into regional markets for the first time with its entry into Myanmar during Q2.

Our Hospitals have operated at high occupancy levels during the first six months of the financial year. In part, this has been due to the dengue epidemic. We are also seeing growth from increased surgeries as we continue to expand our services, push to higher levels of clinical excellence and generate improved performance from investments made in the sector.

We have now renamed and rebranded J.L. Morison Son & Jones (Ceylon) PLC (JLM) to Morison PLC. The company launched its new identity with the unveiling of its new logo, signifying the company’s strong focus on being a leader in technical excellence and innovation. Morison’s posted a revenue of Rs.1.9Bn and operating profit Rs.282.7Mn for this interim period. Morison’s underlying revenue and operating profit growth, excluding Agro, which we exited during the latter part of FY17, was 4.0% and 28.0% respectively. Growth against the previous year was primarily driven by pharma manufacturing and pharma distribution. Construction of the new manufacturing facility is ongoing.

Our Leisure, Travel and Aviation business recorded a total revenue of Rs.1.6Bn, reflecting a decline of 14.7% YoY for the six months under consideration. During Q1, overall arrivals to Sri Lanka witnessed a moderation in growth as a result of the negative publicity and travel warnings due to flooding and landslides in May. Serendib Hotels reported a 5.6% fall in revenue due to decline in occupancies and average room rates primarily due to increase in room inventory. During the second quarter, Serendib Group announced the acquisition of a 51.15% stake of the ‘Lantern’ Group for an investment of Rs.309.5Mn. This is a significant milestone in Serendib Leisure’s quest to grow in boutique luxury villas in Sri Lanka, enabling us to provide superior and diverse hospitality options to the discerning traveler. Travel and Aviation segment indicated a growth in revenue of 1.3%. Overall profitability of this segment continued to be below expectations stemming from travels and hotels. Anantara Peace Haven Tangalle performed comparatively better than last year, however losses incurred year-to-date has impacted Group profitability.

Hemas Logistics and Maritime recorded revenue growth of 54.0% over last year with revenues of Rs.1.3Bn. This growth has been driven by both our agencies and logistics. During the year, our logistics joint venture with GAC and Maclaren’s has shown improved results, mainly driven by the 3PL operations. Construction of our new logistics and container yard facility is ongoing and on track to complete by early FY 2019.

Our technology business, N*Able generated strong revenue growth due to the successful completion of three major projects during the quarter in contrast to its weak start in FY17.

The overall business environment appears challenging for the second half of the year. We have developed plans to drive improved profitability and address areas of weaker performance identified during the period to September 30, 2017. The team will continue to push hard to drive growth and efficiently manage emerging risks and challenges.

Steven Enderby
Chief Executive Officer

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Dandex Pro Scalp – Sinhala

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Dandex Pro Scalp – English

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Hemas ‘Piyawara Singithi Diriya’ Prison Project to Enrich & Empower Children

In partnership with the Ministry of Women & Child Affairs and Welikada Prison Authorities

Colombo, Monday 28 August 2017: The Hemas Outreach Foundation (HOF), in collaboration with the Ministry of Women and Child Affairs of Sri Lanka and the Welikada Prison Authorities, launched ‘Piyawara Singithi Diriya’, a special project aimed at empowering the lives of children under the age of five years living with their mothers at the Welikada prison for no fault of their own. The event took place in the presence of the Foundation Trustees, Foundation Brand Ambassador, Mr. Roshan Mahanama and employees of Hemas Holdings PLC.

(L – R) Ms. Azira Esufally, Trustee, Hemas Outreach Foundation, Ms. Maureen Enderby, Trustee, Hemas Outreach Foundation, Mr. Chandana Ekanayake, Superintendent of Prison, Mr. Roshan Mahanama, Brand Ambassador, Hemas Outreach Foundation, Ms. Shiromi Masakorala, Executive Director, Hemas Outreach Foundation, Mr. Mindika Thilakarathna, Manager, Hemas Outreach Foundation and Chief Jailor of the Welikada Prison

An extension to the Foundation’s ‘Piyawara’ Early Childhood Development initiative established in 2002, the ‘Piyawara Singithi Diriya’ programme will focus on enhancing the quality of life of the children residing at the prison quarters with their mothers who are prisoners at the Welikada Prison. The Foundation identified that there are approximately 15 – 20 children between the ages of three months and five years on average who are compelled to reside with their mothers in a separate prison ward under appalling conditions, as well as encounter a lack of proper nutrition as the prison is unable to provide a separate meal plan for children. This entails the young children having to consume the same food as their adult mothers.

In an effort to enrich and empower the lives of these innocent young children, the Hemas Outreach Foundation will be refurbishing the existing prison ward to ensure improved sleeping conditions, sanitation facilities, and establish a play area within the premises. Further, along with providing the basic daily nutrition requirements of the children, Hemas will be distributing consignments of its Baby Cheramy products under the supervision of the HOF and Prison Authorities on a monthly basis.

“This is a much needed program that is fully supported by the Children’s Secretariat of the Ministry. We, being the policy makers on Early Childhood Care & Development (ECCD), are thankful to our developmental partner Hemas for initiating a sustainable project of this value.  We will continue to assist in the monitoring process and coordinate with the Prison Authorities to ensure that the children residing at the prison will avail of this great initiative,” said Mrs. Nayana Senaratna, Director, Children’s Secretariat of the Ministry of Women and Child Affairs of Sri Lanka.

Mr. Chandana Ekanayaka, Superintendent of Prison said, “We want to provide the right environment for these children who will be under our supervision whilst their mothers are inmates of this prison. It is a daunting task to provide the right environment in a location like this, but we know that providing proper nutrition and a conducive environment for these children during their early years is critical for their future development.   We are thankful to Hemas for setting an example and initiating the effort to assist us and implement the ‘Piyawara Singithi Diriya’ project to ensure its sustainability.”

“The Management and employees of Hemas consider the ‘Piyawara Singithi Diriya’ initiative one that is close to their hearts and therefore, are wholeheartedly extending their support towards funding the project.  As a result, the monthly nutritional expenses of the children are borne by our employees themselves. Refurbishment expenses that are estimated to cost Rs. 3 million are primarily personal donations from the Senior Management of Hemas, while the remainder will be channeled by the Foundation. We have always had great faith in our partnership with the Children’s Secretariat of the Ministry of Women and Child Affairs of Sri Lanka that has enabled us to work together with the Prison Authorities to ensure that we are able to oversee the Early Childhood Care & Development of these children, as well as drive the sustainability of a project of this nature,” said Ms. Shiromi Masakorala, Executive Director of the Hemas Outreach Foundation. She added, “Personally, I am proud to be working for a socially responsible organisation such as Hemas that comprehends the genuine needs of our country and its people.”

With a  mission ‘to enrich the lives of underprivileged children of Sri Lanka through Early Childhood Care & Development, the Hemas Outreach Foundation launched ‘Piyawara’ in 2002 to provide a holistic approach to ECCD with the core beneficiaries being children under the age of five years in Sri Lanka. ‘Piyawara’ was initiated in partnership with the Children’s Secretariat of the Ministry of Women and Child Affairs and at present, enable an increasing number of children to benefit from the 41 Piyawara preschools that are established across the country.  In addition to constructing preschools, the ‘Piyawara’ programme focuses on teacher training, parental awareness programs, empowering children with disabilities, emergency intervention during disasters, and curtailing child abuse through building awareness in collaboration with the Sri Lanka Police.

Mr. Chandana Ekanayake, Superintendent of Prison presenting food rations to Welikada Prison Welfare Officers

Welikada Prison Welfare Officers with Ms. Azira Esufally, Trustee, Hemas Outreach Foundation, Ms. Maureen Enderby, Trustee, Hemas Outreach Foundation, Mr. Chandana Ekanayake, Superintendent of Prison, Mr. Roshan Mahanama, Brand Ambassador, Hemas Outreach Foundation, Ms. Shiromi Masakorala, Executive Director, Hemas Outreach Foundation, Mr. Mindika Thilakarathna, Manager, Hemas Outreach Foundation and Chief Jailor of the Welikada Prison

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J L Morison to build a State-of-the-Art New Research and Manufacturing Facility in Homagama

Sri Lanka’s first EU Good Manufacturing Practices (GMP) compliant manufacturing facility

J L Morison Son & Jones (Ceylon) PLC, the largest pharmaceutical manufacturer in Sri Lanka, is investing USD 13.5 million on a new Research and Manufacturing facility located within the SLINTEC (Sri Lanka Institute of Nano Technology) Park in Pitipana, Homagama. The foundation stone laying ceremony was conducted on 15th June in the presence of top management officials. The plant will be the first European Union Good Manufacturing Practices (GMP) compliant facility in the country. The state-of-the-art facility is expected to be in operation by March 2019 and will further augment the manufacturing capacity of J L Morison.

J L Morison Son & Jones (Ceylon) PLC commenced operations in Sri Lanka in 1939 and listed on the Colombo Stock Exchange in 1964. In May 2013, the Hemas Group acquired a controlling stake of the company. Today, it is a fully Sri Lankan owned company with over seven decades of experience in pharmaceutical manufacturing and renowned over-the-counter brands such as Morison’s Gripe Mixture, Lacto Calamine, and Valmelix, amongst others. The manufacturing process maintains stringent quality standards and is in compliance with the recognised pharmacopeia specifications and good manufacturing practices, in line with World Health Organisation (WHO) guidelines.

The global Pharmaceutical industry is one of the fastest growing industries, which over the last decade, has grown steadily at a Compound Annual Growth Rate of 5.8%.  The stable growth trajectory is expected to continue and reach USD 1.4 trillion by 2020. The rise of “Pharmerging Markets” which is expected to reach 350 billion dollars by 2020 is one key trend seen abetting this growth.

Managing Director, Trihan Perera of J L Morison Son & Jones (Ceylon) PLC said, “The new Research and Manufacturing facility marks an exciting new era for J L Morison and is also significantly, a key milestone for the industry. The facility will create employment for over 200 skilled and semi-skilled persons. It will enhance the use of new technology in the industry and facilitate a modern and technologically-advanced workplace for our employees. Most importantly, the establishment will focus on increasing the availability of an even wider range of high quality, efficacious pharmaceuticals in the country, thereby enhancing our self-sufficiency. This will help save valuable foreign exchange over the years and help bolster our nation’s foreign exchange earnings through exports. We thereby envision a multitude of benefits for all our valued stakeholders and the nation as a whole as a result of this operation. Every great journey begins with the first step. Today, we take that first step with revitalised aspirations, courage and commitment.”

He also stated that the new facility will contribute significantly in achieving a near self-sufficiency in pharmaceuticals, while creating a stronger footprint in exports.  A globally significant pharmaceutical manufacturing industry in Sri Lanka will be able to better support a robust national health policy that will benefit all Sri Lankans.

Driven by the increase in global trade in pharmaceutical products and the subsequent complex technical regulations related to medical safety and quality, there has been a push towards the harmonisation of international pharmaceutical guidelines and regulations by intergovernmental organisations at regional and international levels. Thus, the partnership with SLINTEC is expected to drive cutting edge innovation through both Nano and Bio technology in creating innovative and effective pharmaceuticals, enabling Sri Lanka to be ready to compete in the global pharmaceutical arena.

J L Morison Son & Jones (Ceylon) PLC is a subsidiary of diversified conglomerate Hemas Holdings PLC, listed in the Colombo Stock Exchange with a focus on Fast Moving Consumer Goods, Healthcare, Transportation, and Leisure.

Posted in J.L. Morison |

‘Hemas Cash Back’ VAT Reclaim Service helps travellers transform trash into cash

Hemas Travels, the local representative for Hogg Robinson Group (HRG), the global travel management company with representation in over 120 countries, has been appointed the official representative for the Cash Back, the VAT reclaim organisation with its Head Office in Switzerland.

“Hemas is delighted to have been given the rights to market and sell the Cash Back VAT reclaim services in the local market in order to significantly reduce our clients travel costs”, said Amila Gunawardana, Manager in Charge of Hemas Cash Back.

Each year, businesses in the region spend millions in VAT on services supplied in UK, Europe, Canada and Australia. It includes VAT charged on hotel accommodation, entertainment, telephone calls, travel, transportation, training, conferences, meetings and events, exhibitions, as well as other services. Recovering VAT on these types of services represents a significant cost saving when it is refunded to companies by Hemas Cash Back.

With the Hemas Cash Back tie-up, corporate organisations based in Sri Lanka can reclaim what is rightfully theirs in terms of VAT refunds for all travel and related costs incurred during business trips made in the above markets.

You could say that Hemas Cash Back simply turns your trash into cash.  These two giants, Hemas and United Cash Back with their 60 and 30 years travel and VAT reclaim experience respectively, together offer end-to-end solutions for businesses, helping to reduce a company’s expenses by managing their VAT expenditure on travel costs.  Together there is also the opportunity to consolidate the total VAT reclaim process regionally for larger organisations.

“We at Hemas Travels are positive that our corporate travel solution services with HRG will be further enhanced by the network partnership with Cash Back. By offering this unique VAT Reclaim service to our clients we feel privileged to be part of a scheme that will enable our corporates to get back what is rightfully theirs. After all we are talking about a lot of money which companies are losing today by leaving it at the tax authorities across Europe”, Gunawardana added.

“Cash Back is proud to be associated with Hemas, one of Sri Lanka’s largest award winning, IATA accredited travel agencies”, said Jane Holmberg, Head of United Cash Back Operations. This Cash Back appointment with Hemas enables travellers to experience a first class travel service with the added benefit of knowing that they can reduce their foreign travel budget by as much as 20% through reclaiming the VAT that is rightfully theirs”.

“As HRG’s representative in Sri Lanka, Hemas Travels has always set the local benchmark for corporate travellers to experience the best of what any global business travel agent has to offer. This partnership is further testimony to this as HRG Sri Lanka adds to the list of reasons why they should be the corporate travel agent of choice in Sri Lanka”, said Fahim Jalali, Regional Head for HRG and Cash Back across Middle East, West Asia and North Africa.

The process is simple, Hemas Cash Back simply registers each client and collects their original invoices for submission to the relevant tax authorities, providing regular updates on the status of each claim, all working to ensure that maximum refunds are reclaimed for the client’s business.

“With this truly win-win proposition there is nothing to lose especially due to a no-refund no-fee policy which transforms a client’s otherwise valueless invoices into a significant source of income. It has never been easier for a company to significantly reduce its costs at no extra expense. The senior management of Hemas is really excited about the prospect of this new agency and how it can help Sri Lankan businesses”, Gunawardana concluded.

Malinga Arsakularatne (Managing Director – Hemas Leisure, Travel and Aviation Group), Riza  Ahamat (Director – Hemas Travels (    Pvt) Ltd), Amila Gunawardana (Manager Hemas Cash Back), Jane Holmberg (Head of Network Operations – Cash Back Switzerland), Harith Perera (Director Hemas Travel Cluster) and Asitha Amerasinghe (Manager, Business Development – Hemas Travels (Pvt) Ltd).

Posted in CORPORATE NEWS, TRANSPORTATION |