financial & strategic analysis of hemas holdings plc
TRANSCRIPT
Hemas is one of Sri Lanka’s top diversified conglomerates, with a focus on five key sectors - FMCG, Healthcare, Transportation, Leisure and Power & Strategic Investments. They are a publicly listed company with over 2000 employees.
Their products and services touch the lives of millions of people from new-born babies to large international businesses. They are working with their communities to create exciting learning environments for future generations.
HistoryFounding of Hemas (Drugs) Ltd by Sheikh Hasannally Esufally (MBE) in 1948. Commenced manufacturing toiletries in collaboration with a French multinational in 1962.
Started commodity exports in 1978. Travel sector accredited by International Air Transportation Association (IATA) in 1982. Investment in 8 acre Industrial Complex for manufacture and warehousing of cosmetics and pharmaceuticals at Welisara in 1983.
Hemas Drugs Ltd. Renamed Hemas Holdings (Pvt) Ltd in 1993. Established the Airline GSA Division through GSA for Malaysia Airlines in 1994.
Established a state-of-the-art apparel manufacturing facility in Welisara, Sri Lanka in 1998. Husein Esufally appointed Group CEO in 2002. Hemas Holdings listed on the Colombo Stock Exchange in 2003. Lalith de Mel appointed Non-Executive Chairman in 2006.
Achievements
‘Diva’ savours dual victory with Gold and Silver at SLIM Brand Excellence Awards in 2008. Hemas won the Annual Corporate Citizens Award in 2007. International recognition for Hemas 'Piyawara' CSR project in 2007. Hemtours Wins the Prestigious Most Innovative Tour Award from Hayes & Jarvis in 2007. Hemas wins award for SAP Excellence in 2006. Clogard receives SLS Mark - Only toothpaste brand in Sri Lanka to be awarded certification in 2006.
Board of Directors
Deshamanya Lalith De Mel Chairman
Husein EsufallyChief Executive Officer
Abbas EsufallyNon-Executive Director
Imtiaz EsufallyExecutive Director
FMCG - This is the largest sector at Hemas. FMCG is involved in the development, manufacture, marketing and distribution of a vast range of consumer products, most of which are household names.
Products Personal CareIn personal care, consumers are loyal to products they trust. Our brands encompass the entire spectrum of grooming products for both babies and adults in hair care, skin care, toiletries, fragrances and oral care. Home CareHemas homecare range is relatively new and consists of Diva detergent powder and Whiz household cleaners. Within a short time period Diva has redefined the Sri Lankan laundry market and emerged as the market leader in the washing powder category.
Paper ProductsHemas expanded its product offerings in 2005 through the acquisition of Nimex, a manufacturer of tissues, toilet paper and kitchen towels.
Personal WashVelvet Skin Care Soap has gained popularity with the middle market segment. The essential material used in manufacturing is fatty acids and the environmentally friendly process does not generate any by-products.
Traded BrandsHemas has been selective of the brands it markets, in order to avoid potential conflicts of interest. Hemas distributes products for Dilmah, one of Sri Lanka's most exclusive tea exporters, and Godrej Hair Dye.
Leisure
Hemtours' destination management company is one of Sri Lanka's leading tour operators, with long term relationships with many leading travel companies in Europe and Asia. Hemas' hotels are popular with tourists, and are located at strategic tourist destinations. They are passionate about travel and committed to creating truly extraordinary holiday experiences.
As one of Sri Lanka's pioneering tour organizers, Hemtours has always been at the forefront of the development of the Sri Lankan tourism industry.
PHARMACEUTICALSHemas Pharmaceuticals is Sri Lanka's pre-eminent pharmaceutical distribution company. We constantly endeavor to deliver breakthrough medicines and equipment to our customers, and are committed to providing high quality medicines.
HOSPITALSHemas Hospitals (Pvt) Ltd, a subsidiary of Hemas Group started its flagship Hospital at Wattala in December 2008. It launched the second hospital in Galle in March 2009.
DIAGNOSTICS & SURGICALThe Diagnostics division was established to distribute and market diagnostic products in Sri Lanka. Products include Immunoassay reagents & Analyzers, Hematology reagents & Analyzers, Rapid Tests, and Blood Glucose Monitoring Systems.
MEDICAL EDUCATIONThe Hemas e-resource centre, housed at the Sri Lanka Medical Association, is a central database that offers information services to Sri Lankan doctors. Centre is equipped with modern audio-visual equipment, and an IT facilitator is on hand to provide assistance when necessary.
CLINICAL RESEARCH SERVICESHemas Clinical Research Services (Pvt) Ltd is a Contract Research Organization (CRO) established by the Hemas group in collaboration with the Clinical Trials Unit (CTU), Faculty of Medicine, University of Kelaniya, one of Sri Lanka's premier institutions of higher education.
TransportationThe transportation sector offers a diverse range of services. It has the largest market share in Sri Lanka for airline representation, and is also involved in travel retailing, freight management, and courier services.AIRLINE REPRESENTATIONHemas currently represents the online carriers Emirates Airlines, Malaysian Airlines - as well as several off-line carriers such as British Midland Airlines, Alitalia, Kenyan Airways, Island Aviation and Druk Air. Hemas makes several vital contributions to these partnerships, including deep market insights, strong industry knowledge, excellent infrastructure and a team of experienced employees.
FREIGHT & LOGISTICSHemas International Freight and Hellman Worldwide Logistics Company provides a complete transportation and logistics service, which includes sea freight, air freight, multi-modal transportation, multi-country consolidation, custom house brokering, and warehousing & storage.
SHIPPINGFar Shipping Lanka (FSL), a fully owned subsidiary of Hemas Holdings Plc has been appointed as the Exclusive Shipping Agent for Far Shipping Lines (FSL), Singapore. Far Shipping launched its operations in 2002 with a mission to provide a reliable feeder service to the Main Liners operating in the Indian subcontinent and West Asia. FSL initially launched feeder services linking the Port of Colombo with the Indian Sub-Continent.
POWERHemas foray into the power generation sector through its investment in Heladhanavi, a power plant has proved to be successful. The Group is now exploring opportunities in the area of mini-hydro power generation.
PROPERTYHemas House, which is managed by our real estate division, consists of 10 storey of office space at one of Colombo's most prestigious addresses. This ultra-modern building is sought out by companies that comprise the Sri Lanka's business sector, primarily for its central location and its facilities. Occupants include Holcim, Emirates Airlines, and apparel giants Nike, Marks & Spencer, and MAS Holdings.
COMMUNITYHemas honed in on Early Childhood Care and Development (ECCD) project - a vital aspect of a child's holistic development, which if carefully structured would create the foundation for a life long learning. Through our Piyawara initiative they have committed ourselves to promoting ECCD in Sri Lanka, by working with government, teachers and parents to up-grade existing pre-schools in remote regions.
DISASTER RELIEFHemas helped the people and children who affected the Tsunami that struck Sri Lanka in December 2004. They built houses and schools for the Tsunami affected people.
2010 2009 2008 2007 20060
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000Profit After Taxation (Rs.000)
Profit After Taxation (Rs.000)
2010 2009 2008 2007 20060.00
2.00
4.00
6.00
8.00
10.00
12.00Earnings Per Share (Rs.)
Earnings Per Share (Rs.)
2010 2009 2008 2007 20061.10
1.15
1.20
1.25
1.30
1.35
1.40
1.45Current Ratio (No. of Times)
Current Ratio (No. of Times)
2010 2009 2008 2007 20060.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0 Net Assets Per Share (Rs.)
Net Assets Per Share (Rs.)
2010 2009 2008 2007 20060.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0Gearing (%)
Gearing (%)
2010 2009 2008 2007 20060
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Current Liabili-ties (Rs.000)
Non Current Liabilities (Rs.000)
Current Liabilities & Non Current Liabilities (Rs.000)