Hemas records modest 2Q earnings amid sluggish consumer demand

Hemas PLC reported modest earnings growth for the second quarter ending in September 2023 (2Q24) in light of the sluggish consumer demand in the economy.
The FMCG juggernaut with interests in healthcare and transportation, reported earnings of Rs.2.04 per share or Rs.1.2 billion for 2Q24, compared to earnings of Rs.1.93 per share or Rs.1.1 billion reported for the same period last year.
The revenue for the period rose 10 percent year-on-year (YoY) to Rs.29.8 billion, while the cost of sales rose 8.4 percent YoY to Rs.21.1 billion, resulting in a gross profit of Rs.8.6 billion.
The operating profit for the period under review was Rs.2.7 billion, up 2.7 percent YoY.
The group saw its finance cost edging down by 7.2 percent YoY to Rs.899.5 million during the quarter under review.

Income tax expense for the period was Rs.726.3 million, up 30.5 percent YoY.
The group’s consumer brands segment, which includes its FMCG and stationary businesses, reported revenue of Rs.11.5 billion for 2Q24, up from Rs.10.1 billion a year ago. The segment’s net profit rose to Rs.1 billion from Rs.616.1 million.
The healthcare segment, which includes hospitals and pharmaceutical import, distribution and manufacturing, reported revenue of Rs.17.9 billion for the quarter under review, up from Rs.16.5 billion in 2Q23. The segment’s earnings edged up to Rs.756.9 million from Rs.713.7 million.
The mobility segment of the group reported revenue of Rs.376.2 million for 2Q24, down from Rs.468.6 million a year ago. The net profit of the segment also fell to Rs.136.7 million from Rs.341.4 million.
Hemas Group CEO Kasturi C. Wilson attributed the poor performance of the mobility segment to slowdown in import and export activities.
Esufally family controls over 61 percent of the issued shares of Hemas.