Hemas unit to exit from crisis-hit Myanmar
View(s):Sri Lanka’s Hemas Holdings Group is exiting from its operations in Myanmar which has been gripped by political unrest for nearly a year under a military junta, the group announced on Wednesday.
“Due to the challenges in the operating environment in Myanmar, we have entered into a sale and purchase agreement with our joint venture partner to sell HHL’s stake in Myanmar. As a result, we will be exiting the operations in Myanmar, effectively from the fourth quarter onwards,” Kasturi C. Wilson, Group Chief Executive Officer, revealed in her review of the group’s 9-month results on Wednesday.
She said Hemas Holdings PLC (HHL) delivered a strong and a resilient first nine months (to December 2021) amidst a challenging operating environment.
The cumulative group revenue stood at Rs.57.7 billion, an increase of 20.5 per cent over last year. The underlying cumulative operating profit of Rs.4.9 billion, excluding all disposed entities, reported an increase of 4.3 per cent over last year in spite of profitability pressure experienced across most parts of the business due to input cost inflation and challenges around foreign exchange liquidity. Underlying group earnings excluding dividend tax stood at Rs. 3.3 billion, an increase of 7.2 per cent over last year.
During the October-December quarter, group revenue grew by 21.9 per cent over last year. The group underlying operating profit and earnings of Rs.2.3 billion and Rs. 1.3 billion saw a year-on-year increase of 5.7 per cent and 2.4 per cent respectively. The group’s Healthcare businesses, in particular, contributed to the improved performance.
Her review said that the group divested its interest in Spectra Logistics for a total consideration of Rs.1.3 billion in October 2021 and the gain realised in the sale amounted to Rs.295.3 million.
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