Friday November 6, 2026 10:34 am
Friday November 6, 2026 10:34 am
ECONOMYNEXT — Sri Lanka’s diversified conglomerate Hemas Holdings PLC recorded a net profit of Rs. 2.00 billion for the quarter ended September 30, 2026, down 3.0 percent from Rs. 2.06 billion reported in the corresponding quarter last year, interim financial accounts showed.
The group posted basic earnings per share of Rs. 0.67 for the September quarter, down from Rs. 0.69 a year earlier.
Quarterly revenue rose 17.0 percent to Rs. 37.79 billion from Rs. 32.29 billion, driven by double-digit expansion across key segments.
Top-line performance was led by the Hospitals sector, which expanded 19.3 percent to Rs. 3.21 billion on higher medical admissions and increased channel consultations, while Consumer Brands jumped 18.3 percent to Rs. 15.57 billion.
Life Sciences, the largest revenue contributor, rose 16.2 percent to Rs. 18.37 billion, and Mobility grew 3.7 percent to Rs. 646 million.
The quarter also included the initial consolidation of East African learning solutions provider Twiga Stationers & Printers Limited in Kenya, following the acquisition of a 75 percent stake via Atlas Axillia on August 17, 2026, which added 1.40 billion rupees in provisional goodwill.
Cost of sales grew at a faster pace of 22.5 percent to Rs. 26.57 billion, restricting gross profit growth to 5.8 percent at Rs. 11.22 billion. Gross profit margin contracted by 3.1 percentage points to 29.7 percent.
Profitability was compressed as the group opted to absorb escalated input, energy, and logistics costs resulting from the Middle East conflict rather than passing the burden entirely onto consumers.
Price recovery was further constrained in regulated pharmaceuticals, where price revision mechanisms under the National Medicines Regulatory Authority (NMRA) faced ongoing delays.
Selling and distribution expenses fell 3.2 percent to Rs. 2.73 billion due to pruned direct marketing spend, while administrative expenses rose 12.6 percent to Rs. 4.95 billion, lifting operating profit by 8.1 percent to Rs. 3.78 billion.
However, finance costs surged 149.4 percent to Rs. 464.3 million as short-term bank borrowings and working capital lines increased to fund inventory build-ups ahead of the school season, extended distributor credit terms, and the Twiga acquisition. Net finance costs expanded to Rs. 248.7 million from Rs. 55.5 million.
Income tax expense rose 9.8 percent to Rs. 1.41 billion, leaving total group profit for the period down 1.7 percent at Rs. 2.12 billion.
Total assets reached Rs. 129.97 billion as of September 30, with net asset value per share rising to Rs. 19.22 from Rs. 17.06 a year earlier.
The board declared an interim dividend of Rs. 0.25 per share, payable on or before December 4, 2026.
Hemas Holdings’ shares closed at 31.00 rupees at the end of September and were trading around 30.90 to 31.20 rupees this week. (Colombo/Nov05/2026)