Hemas Ranked 9th Most Respected Entity in Sri Lanka by LMD

The LMD 2016 edition of the Most Respected features 66 listed companies, along with 56 private entities, 26 multinationals and seven state enterprises.  This year Hemas is ranked at No 9 whilst in 2015 Hemas was ranked No 11.

As in 2015, this year’s edition of Most Respected adopts the Olympic Ranking System to record peer perceptions of corporate admiration.  The survey was conducted by Nielsen Company (Sri Lanka) covering a sample of 800 respondents (managers and above from listed companies). Criteria was based on financial performance, quality conciseness, management profile, honesty, innovation, dynamism, corporate culture, CSR, vision and nation mindedness.

Accordingly, Sri Lanka’s most respected organizations are the recipients of gold, silver and bronze medals, reflecting their admiration among peers. Hemas has received 17 Gold, 22 Silver and 37  Bronze medals to be ranked in the 9th place.  The top 10 includes four of the largest diversified companies, two private sector commercial banks and two of the leading apparel manufacturers in Sri Lanka.

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Posted in CORPORATE NEWS, Investment News |

CEO’s Review – Q1 of financial year 2016/17

Hemas Group achieved operating profit of Rs.907Mn, YoY growth of 34.8% for the Q1 of financial year 2016/17

Through continued focus on our strategic priorities, profitable growth, improved organizational structure and innovation, we delivered strong revenues and earnings growth for the first quarter of financial year 2016/17. Hemas Holdings PLC (HHL) and its subsidiaries achieved consolidated revenues of Rs.9.9Bn, year-on-year (YoY) growth of 12.1% for the period, operating profit reached Rs.907Mn and earnings Rs.696Mn, growth of 34.8% and 67.8% respectively. Despite external pressures due to flooding, VAT uncertainty, and increasing inflation resulting in weaker demand, we continued to generate solid performance with FMCG Bangladesh, Pharmaceutical Distribution, and our new shipping agency Evergreen all contributing well.

The Consumer business recorded a topline of Rs.4.2Bn for the first three months, a 10.2% YoY increase over the previous financial year. Operating profits were Rs.636Mn, 59.2% YoY growth, whilst earnings grew at 62.6% to stand at Rs.509Mn. We continued to expand our position in key categories with the introduction of our new range of Baby Cheramy diapers. Bangladesh Consumer performed well contributing to overall Consumer business growth, driven by extended reach attained through own distribution channels and strong marketing activities.

Consolidated healthcare sector revenue for the first quarter stood at Rs.4.3Bn, a YoY increase of 17.6% whilst earnings grew at 13.5%. Hemas pharmaceutical distribution registered strong growth maintaining its market leadership position.  Our pharmaceutical sales growth continues to be driven by our strong presence in growing therapeutic segments and due to the recovery in the overall pharmaceutical market over the last year. We launched our latest addition to the pharma portfolio, Jenburkt Pharma during the month of May 2016. Hospitals performance showed mixed results during the quarter due to the introduction, and subsequent removal, of VAT for healthcare services, and different approaches to VAT introduction by various private healthcare operators creating market confusion.

J. L. Morison posted a YoY growth of 4.3% and earnings growth of 28.2% for the three months ended June 30, 2016. Our Rx Pharma portfolio continued to do well, benefiting from new product launches. OTC and Consumer also contributed significantly towards overall revenue growth while the Agro division registered a decline in growth limiting overall company revenue growth.

Leisure, travel and aviation segment recorded a total revenue of Rs.775Mn, reflecting an 8.2% YoY growth for the three months under consideration. During this usual low season for the Leisure industry and despite a decrease in occupancy at Avani Bentota and Club Hotel Dolphin, Serendib Hotels posted a revenue growth of 4.8% with traditional markets performing slightly below expectations.  Travel and Aviation segment also showed mixed results with some GSAs showing improvements in both yields and number of passengers handled, while others faced competitive operating environments. As a result, the segment recorded a decline in revenues of 4.3%.

In April 2016 Hemas Maritime was appointed the exclusive shipping line agent of Evergreen Lines. We believe this will enable us to consolidate our position in the logistics and maritime sector. Growth continued in our domestic logistics operations with warehouses operating at high levels of capacity underpinned by new customers for our distribution operation and higher levels of container handling activity. As a result, logistics and maritime revenues grew by 63.2% whilst earnings registered a growth of 118.6% over last year.

FY 2016/17 has got off to a good start for HHL with our major businesses growing well. We continue to be watchful of tightening economic conditions for the year ahead. Our teams are working hard to sustain our growth momentum in the coming quarters of the financial year.

Steven Enderby
Chief Executive Officer
Colombo
10 August 2016

Posted in CORPORATE NEWS, Investment News |

Hemas launches comprehensive Wellness Program

Hemas launches comprehensive Wellness Program for employees

DSC_9091-2The Hemas Group launched a comprehensive Wellness Program for its employees with an aim to have the healthiest workforce in Sri Lanka. This is a holistic approach to wellness focusing on the employees’ physical, mental and spiritual well-being.

Health being an integral part of Hemas identity, a well-strategised wellness program was designed by the company benchmarking some of the globally recognised standards used by multinationals in developed countries.

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Hemas Holdings PLC posts 37.7% Earnings growth for 2015-16

Hemas Holdings PLC (HHL) and its subsidiaries achieved consolidated revenues of Rs.37.9Bn, a  year-on-year (YoY) growth of 16.9% for the twelve months ended March 31, 2016.  During this period operating profit reached Rs.4.0Bn and earnings Rs.2.7Bn, growth of 17.5% and 37.7% respectively. An additional interest income of Rs.280Mn was earned from investing the proceeds of the rights issue.

The FMCG sector achieved total revenues of Rs.14.3Bn for the twelve months, a 20.2% YoY increase over the previous financial year. Operating profits were Rs.1.8Bn, 50.5% YoY growth, whilst earnings grew at 37.2% to stand at Rs.1.4Bn. Strong performance was underpinned by our Bangladesh operation maintaining excellent revenue and profit growth, as well as strong sales across all our major brands in the domestic market and relatively weak commodity prices for key raw material inputs.

Overall healthcare sector revenue for the twelve months under review stood at Rs.16.1Bn, a YoY increase of 16.0%, whilst earnings grew at 22.8%. During the year, Hemas Hospitals opened its first wellness centre at Orion City, three new laboratories and invested in building capabilities in the Urology specialty. Our hospitals growth in revenue contributed 34.7% of the overall segment’s revenue growth. Hemas pharmaceutical distribution operation registered a YoY topline growth of 8.2% maintaining its market leadership position.  Our pharmaceutical sales growth continues to be driven by our strong presence in growing therapeutic segments.

JL Morison posted a YoY growth of 22.8% and earnings growth of 43.4% for the twelve months ended March 31, 2016. Revenue growth was largely driven by the increase in sales from the buyback arrangement with Government of Sri Lanka and sales growth in key diagnostics agencies. The significant growth in operating profit resulted from increases in revenues in both consumer/OTC products and pharmaceutical segments, efficiency and capacity gains at the plant after a period of closure of the plant in Q1 2014/15 and a restructured distribution network.

Transportation sector reported a revenue of Rs.1.8Bn, a 17.2% YoY topline growth.  Revenue growth was driven by higher volumes through our domestic logistics operation with warehouses operating at high levels of capacity, higher volume throughput at our container depot and new 3PL customers, specifically Hemas Logistics was able to secure a warehouse and distribution agreement for Sathosa.  GSA businesses continued to experience challenges from lower yields of ticketing income. With subdued revenue growth from the aviation segment, the transportation sector registered an operating profit of Rs.499Mn which is a growth of 8.2% over the previous year.

The leisure sector recorded a revenue of Rs.3.4Bn for the 12 months ended March 31, 2016, a growth of 13.0% over the previous year.  Our newest property, the luxury hotel Anantara Peace Haven Tangalle Resort, opened in December, finished its first operating quarter with encouraging performance. Serendib Hotels posted a revenue growth of 12.2%, driven by strong performance from the popular Dolphin Hotel which recorded year-round occupancy of 83%.
Finally in technology, N-Able posted a YoY revenue growth of 16.1%, despite the revenue growth, earnings were impacted by project delays and high operational leverage.

We continue to focus on driving growth from our core Consumer and Healthcare businesses while seeking continuous innovation, and strong profitability for the year ahead.

Steven Enderby
Chief Executive Officer

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Hemas Maritime Appointed as Agents for Evergreen

Hemas Maritime Appointed as Agents for Evergreen Lines in Sri Lanka

3rd largest mainline carrier to the port of Colombo

Hemas Maritime (Pvt) Ltd, a member of the Hemas Group engaged in shipping, chartering, and related services, today announced that the Company has been appointed by Evergreen Lines as its General Agent in Sri Lanka. This appointment will also support the Hemas Group’s future goals of expanding in the shipping and logistics sectors enhancing Sri Lanka’s maritime & logistic hub aspirations.  The appointment was made through a formal tender process, from amongst many professional ship agency companies.

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The Evergreen Group began with the establishment of Evergreen Marine Corporation (EMC) by Dr. Yung-Fa Chang on 01 September 1968, and is now one of the leading international shipping companies in terms of its fleet operations, service quality and innovative shipbuilding concepts. It is ranked 6th globally by Alphaliner.

The liner commenced its operations in Colombo in the year  1986. Today it is the 3rd largest mainline carrier to the port of Colombo.

Evergreen Line is the unified common trade name for the  shipping companies of the Evergreen Group. The brand ‘Evergreen Line’ is used for international marketing purposes for Evergreen Marine (UK) Ltd,Evergreen Marine (Hong Kong) Ltd, Evergreen Marine (Singapore) Pvt Ltd, Evergreen International S.A, Italia Marirrima S.P.A. ,Evergreen Marine Corp. (Taiwan) Ltd, and Greencompass Marine S.A.

The company operates one of the largest container fleets in the world, with over 186 ships   aggregating to  927,955 TEU. The Company has a comprehensive service network covering all major ports around the world. Evergreen has set up trans-shipment hubs in key geographic locations within its service network, including the port of Colombo.

A spokesman from Hemas said, “We are honoured with this appointment by Evergreen Lines as its agents in Sri Lanka. We will ensure that we support Evergreen to enhance it’s presence, using Colombo port as its regional hub and in expanding their services through Colombo, therreby providing Sri Lankan Exporters and Importers greater service options for Ocean Freight Logistics to and from Evergreen’s Comprehensive global network”.

Hemas’ shipping agency business functions currently as agents for Far Shipping, one of the largest feeder carriers servicing the Port of Colombo. This is also complemented with Hemas Logistics, through its Container Freight Station and haulage business and its growing third party logistics offering.

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Hemas Hospitals launches landmark Mobile App

January 17, 2016; Leading healthcare provider, Hemas Hospitals announced the launch of their mobile application created especially to provide instant access to several valuable healthcare services and information addressing a growing need of the customers served. The App, which can be downloaded for free on Android and iOS devices, walks users through a myriad of functions from accessing over 500 Consultants, paying bills, to keeping tabs and monitoring general health of the user.

This ground-breaking initiative allows users to schedule appointments with Consultants available across Hemas Hospitals’ multi-chain, Wattala and Thalawathugoda. The App also allows for payment of bills via credit card through a payment gateway. Payment of bills for in-house patients or at the point of admission can be done from any part of Sri Lanka or any part of the world from the palm of one’s hand, using the App.

“In keeping with Hemas Hospital’s mission of delivering exceptional care, we are excited to roll-out this Mobile App” said Managing Director of Hemas Hospitals, Dr Lakith Peiris. “The App goes beyond just providing information and is an important tool that will provide accurate medical and health info as well as easy access to our renowned Consultants” Dr Peiris explained.

Sharing his views at the launch, Dr Peiris went on to note that the new App addresses the growing need for immediate access to healthcare information, with patients and families increasingly tasked with being active decision makers on their family’s health related issues.

“The App provides users with an easy to use patient centric approach and we are thrilled with this effort and our latest innovation in patient care services” expressed Dr Peiris.

“Besides, as families balance their busy schedules with their health needs, this App provided by Hemas Hospitals, will become an essential tool for many” he added.

Downloaded free of charge from the Android Play Store and iTunes for iOS, the App will serve as a one-stop mobile information hub for patient care services. Benefit to the App users will be health reports, appointments scheduling, appointments calendar, booking status plus health tracker and pregnancy trackers, all available in the palm of one’s hands.

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CEO’s review for 2015/16 – Q3

Hemas records an underlying earnings growth of 30.2%
Expects to achieve highest ever levels of revenue and profitability this Financial Year

Hemas Holdings PLC (HHL) and its subsidiaries achieved consolidated revenues of Rs.28.3Bn, year-on-year (YoY) growth of 19.7% for the nine months ended December 31, 2015.  During this period operating profit reached Rs.2.8Bn and earnings Rs.1.9Bn, growth of 25.6% and 65.2% respectively. Eliminating the one off transactions in the preceding year and the additional interest income of Rs.196Mn earned from investing the proceeds of the rights issue, underlying operating profit and earnings maintained a healthy growth of 30.8% and 30.2% respectively.

The FMCG sector achieved total revenues of Rs.11.2Bn for the nine months, a 24.4% YoY increase over the previous financial year. Operating profits were Rs.1.4Bn, 54.4% YoY growth, whilst earnings grew at 32.9% to stand at Rs.1.1Bn. Excluding the one-off capital gains recorded previous year, underlying earnings growth was 49.3%. This performance has been driven by our Bangladesh operation maintaining excellent revenue and profit growth, strong sales across all our major brands in the domestic market and relatively weak commodity prices for key raw material inputs.

Overall healthcare sector revenue for the nine months under review stood at Rs.11.9Bn, a YoY increase of 18.3% whilst earnings grew at 25.8%. During the quarter, Hemas Hospitals opened its first wellness centre at Orion City responding to a call to provide top quality healthcare services to the 6,000 plus employee strength, at Colombo’s premier IT park. This marks another novel concept by Hemas Hospitals in the development of the Sri Lankan healthcare industry. Our hospitals growth in revenue contributed 31.0% of the overall segments revenue growth. Hemas pharmaceutical distribution operation registered a YoY topline growth of 12.1% maintaining its market leadership position.  Our pharmaceutical sales growth continues to be driven by our strong presence in growing therapeutic segments.

J. L. Morison posted a YoY growth of 28.6% and earnings growth of 71.7% for the nine months ended December 31, 2015. Revenue growth was largely driven by the increase in sales from the buyback arrangement with Government of Sri Lanka and sales growth in key diagnostics agencies. The significant growth in operating profit resulted from the increases in revenues in both consumer/OTC products and pharmaceuticals segments and last year’s earnings being depressed by closure of the factory in Q1 FY 2014/15.
Transportation sector reported a revenue of Rs.1.3Bn, a 15.2% YoY topline growth. The increase in revenue resulted from growth in our domestic logistics and maritime operations with warehouses operating at high levels of capacity, new customers for our distribution operation and higher levels of container handling and repair activity. Aviation businesses continued to experience challenges due to  lower yields of ticketing income despite increases in volumes. Triggered by limited revenue growth from the aviation segment, transportation sector registered an operating profit of Rs.271Mn indicating a de – growth of 6.1%.

During December, our leisure sector opened our newest hotel property, Anantara Peace Haven Tangalle Resort. We believe that this property will establish a new benchmark for luxury travellers to Sri Lanka seeking authentic cultural experiences. The hotels first month of operation has been encouraging. The leisure segment recorded a total revenue of Rs.2.2Bn, reflecting a 9.2% YoY growth for the nine months under consideration. Serendib Hotels posted a revenue growth of 11%, driven by strong performances from AVANI Bentota and Hotel Sigiriya with an overall occupancy of 78%.

Finally in technology, N-Able posted a YoY revenue growth of 21.3%, despite the revenue growth, earnings were impacted by project delays and high operational leverage.
We continue to work hard to try and sustain our strong growth in the final quarter of the financial year and achieve our highest ever levels of revenue and profitability.

Steven Enderby
Chief Executive Officer

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Hemas and Minor Hotel Group Introduces the Luxury Brand “Anantara” to Sri Lanka

“The countdown begins for the opening of the flagship Anantara property in Sri Lanka”

Hemas Holdings in partnership with Minor Hotel Group will be introducing the leading hospitality brand “Anantara” to Sri Lanka with a soft opening of its first luxury property, Anantara Peace Haven Tangalle Resort in December 2015 with the official launch in early 2016.
With a project value of approximately US$ 50 million, the exclusive Tangalle property boasts 120 rooms and 32 stand-alone private pool villas, six restaurant and bar venues, an exclusive Anantara Spa, a 25 metre swimming pool, fully equipped cardio-gym, tennis and badminton courts. Easy accessibility may be undertaken via chauffeur driven resort owned luxury vehicles, seaplane or helicopter transfers.
Abbas Esufally, (Group Director, Hemas Holdings & Chairman, Serendib Hotels) commented “The launch of the Anantara Peace Haven Tangalle Resort in Sri Lanka, will open the doors for luxury travellers seeking authentic cultural experiences and exposure to the southern coast’s natural wonders, especially in a region that is fast developing its tourism potential.” Mr. Esufally further stated “Many of our executive level employees are those who have recently returned to Sri Lanka from international positions at other branded hotels. We are also proud to have in our cadre a large percentage of female associates.”
The Anantara brand currently boasts 35 stunning properties internationally with future properties to open in Mozambique, China, Sri Lanka, Mauritius, Laos, Qatar and Oman. Anantara Siam – one of Bangkok’s most iconic hotels was proud to have hosted the Hon. President of Sri Lanka – Maithripala Sirisena and his trade delegation at the recently held “Thailand – Sri Lanka Business Forum” whilst on his state visit to Thailand.
Anantara Peace Haven Tangalle Resort is a joint venture between Hemas Holdings and Minor Hotel Group. The second Anantara branded property – the Anantara Kalutara Resort is scheduled to open in March 2016. Serendib Leisure Management Ltd – the leisure arm of Hemas Holdings manages Hotel Sigiriya and Club Hotel Dolphin and the internationally branded hotels AVANI Bentota Resort & Spa and AVANI Kalutara Resort.
Minor Hotel Group (MHG) is a hotel owner, operator and investor, currently with a portfolio of 135 hotels, resorts, camps and serviced suites in operation under the Anantara, AVANI, PER AQUUM, Oaks, Tivoli, Elewana, Marriott, Four Seasons, St. Regis, Radisson Blu and Minor International brands. Today MHG operates over 17,000 rooms in 22 countries across Asia Pacific, the Middle East, Africa, the Indian Ocean, Europe and South America. With ambitious plans to grow the hotel group to 190 properties, MHG continues to expand the home grown brands of Anantara and AVANI, plus continues to announce strategic acquisitions.

About Anantara Hotels, Resorts & Spas:
Anantara is a luxury hospitality brand for modern travellers, connecting them to genuine places, people and stories through personal experiences, and providing heartfelt hospitality in the world’s most exciting destinations. The collection of distinct, thoughtfully designed luxury hotels and resorts provides a window through which to journey into invigorating new territory, curating personal travel experiences.
From cosmopolitan cities to desert sands to lush islands, Anantara connects travellers to the indigenous, grounds them in authentic luxury, and hosts them with passionate expertise. The portfolio currently boasts over 30 stunning properties located in Thailand, the Maldives, Indonesia, Vietnam, China, Cambodia, Mozambique, Zambia, the UAE and Qatar, with a pipeline of future properties across Asia, the Indian Ocean, Middle East and Africa.

anantaraFor more information on Anantara Hotels, Resorts & Spas, please visit www.anantara.com.

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Clogard TVC

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Clogard Fresh Mint – English TVC

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