Hemas Holdings PLC has reported a 9.5% increase in group revenue to Rs. 66.56 billion for the first half of the 2026/27 financial year, supported by strong second-quarter performance across all four business sectors.
According to the company’s latest financial results, second-quarter revenue increased by 17% to Rs. 37.79 billion, compared to the corresponding period last year.
Group earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 10.5% to Rs. 4.50 billion during the quarter, while earnings declined by 3% to Rs. 2 billion.
However, quarterly earnings more than doubled compared to the first quarter, increasing by 113.4%.
For the first six months, Group EBITDA increased marginally by 0.9% to Rs. 6.76 billion, while earnings declined by 9.7% to Rs. 2.94 billion.
Consumer Brands records strong revenue growth
Hemas’ Consumer Brands sector recorded an 18.3% increase in quarterly revenue to Rs. 15.57 billion, supported by double-digit growth across Beauty, Home Care and Baby Care categories.
However, sector earnings declined by 30.6% to Rs. 1.11 billion due to higher operating costs and pressure on margins.
The company said its Bangladesh operations recorded single-digit revenue growth despite challenging economic conditions, while the male grooming category expanded by nearly 50%.
Life Sciences revenue increases 16.2%
The Life Sciences sector recorded quarterly revenue of Rs. 18.37 billion, representing a 16.2% increase, while earnings declined by 26.8% to Rs. 623 million.
Hemas Pharmaceuticals maintained its market leadership and secured six new product registrations during the quarter.
The company said regulated pharmaceutical pricing and the depreciation of the Sri Lankan rupee affected profitability, while Morison’s own-brand volumes increased by 23%.
Hospitals sector records highest growth
The Hospitals sector recorded the highest quarterly revenue growth within the Group, increasing by 19.3% to Rs. 3.21 billion.
Sector earnings increased by 26.9% to Rs. 265 million.
Meanwhile, the Mobility sector recorded revenue growth of 3.7% to Rs. 646 million, while earnings increased by 23.7% to Rs. 307 million, supported by higher freight yields.
Higher costs impact profitability
Hemas said higher raw material, energy and freight costs linked to the Middle East conflict affected margins during the quarter.
The Group absorbed much of the additional costs to maintain consumer affordability and sales volumes.
As a result, the Group’s gross profit margin declined by 3.1 percentage points to 29.7%.
Higher finance costs and taxation also affected overall earnings.
Hemas expands into East Africa
During the quarter, Hemas completed its first international acquisition, purchasing a 75% stake in Twiga Stationers & Printers Limited, a leading stationery manufacturer and exporter in East Africa.
The company said the acquisition provides a platform for long-term expansion across the region.
Looking ahead, Hemas said pharmaceutical price revisions, cost-management initiatives and the third stage of public sector salary revisions in 2027 are expected to support future growth.
The Group has earmarked more than US$100 million for new growth opportunities and aims to generate 15% of its revenue from international markets by the 2029/30 financial year. (Newswire)