Financial Year 2023/24 – Twelve Months Performance
Snapshot of Financial and Operational Review
| Revenue grew by 6.7% to Rs. 121.6 Bn driven by the improvements in all key BUs, Despite the volume contractions in all industries across Hemas managed to outperform the market with market share increases in key segments.Home and Personal Care Sri Lanka Increased focus on high margin personal care segment.Value for money offeringsProviding innovative solutions and NPDs including Home and personal care International Efforts to increase foot print in key markets East Africa and Middle East.Launched new variants in those markets.Learning Segment had a good back to school season and entered the value for money segment with HomerunPharmaceuticals – Increased focus on Morison branded generics Hospitals introduced Ambulatory care and focused on improving home care and drove key anchor specialty revenues However, revenue growth was not up to the expected levels due to adverse impact of the macro-economic challenges. |
| Even though the country saw improvements in the external sector and progress was made in the IMF programme, consumer spending remained low.Despite yoy contraction inflation is on an elevated base Changes to the personal income tax laws and VAT laws (from 15%- 18%)Increase in utility prices and fuel costs. Healthcare Sector particularly remained challenged amidst instability and delays in Government regulatory bodies and procurement authorities. However, there are some green lights with interest rates slowing and exchange rates slowing. We expect these positive to result in a demand recovery in the coming quarter. |
| The businesses across the Group engaged in efficiency improvement initiatives. Allowing breathing space for the businesses to absorb increases in operating overheads. Working Capital optimisation which has been a key priority and this along with interest rate reductions resulted in a significant improvement in finance cost and working capital. Which intern resulted in reduced gearing and over Rs 23.2 Bn growth in operating cashflows. Consequently, the Group reported a 43.1% growth in earnings to report highest ever earnings of Rs. 6.1 Bn for the year |
| Strong Financial position of the Group was verified by the Fitch The reaffirmation of the AAA (lka) Stable Outlook Rating by Fitch Ratings for the fifth consecutive year is a testament to the Group’s resilience and financial strength. |
| We remain cautiously optimistic about the future. Our Strategic priorities to drive organic and inorganic growth,Consumer : Investing in underpenetrated segments like beauty and baby diapers, internationalisation and export footprint.Healthcare : Developing a branded generics portfolio under the brand Morison, driving distribution capabilities, expanding in key anchor specialties, and investing in the transition to a fully-fledged tertiary hospital.Improving the digital infrastructure and fostering a culture of data-driven decision-making will be a priority for all businesses as the |
| Group continues its 75-year-long journey in empowering lives through innovative solutions for the future. |
