Business Times

Hemas will see FMCG, leisure and power sectors boost profits

By Duruthu Edirimuni Chandrasekera

Hemas Holdings PLC (Hemas) will reap large returns on their Fast Moving Consumer Goods (FMCG), leisure and power sectors this year, analysts said. “The FMCG sector during this year will see large volumes growth with improving economic growth and relatively high priced products coming into demand due to higher disposable income,” Deshan Pushparajah, Assistant Manager Corporate Finance, Capital Alliance told the Business Times.

The FMCG sector contributed 4% to the company’s growth during the last financial year, according to Hemas’ annual results. Analysts said that in this sector margins have been relatively squeezed due to high competition as well as the slower economic growth seen over the last year.

Mr. Husein Esufally, Hemas’ CEO in the annual review, said that FMCG industry in the country grew by 9%, while most FMCG categories at Hemas saw a double digit growth aided by the opening up of the North/East markets.

Hemas saw a 30% hike in profits in the last financial year to Rs 935 million compared to the Rs 719 million recorded the year before. Mr. Pushparajah noted that Hemas’ results have mainly grown due to the reduction in cost of sales and reduction in finance costs.

“The leisure and travel sectors will also do very well this year. This is the year for tourism and it is expected that there will be a large growth in this area.” He said that power sector profits will improve with the additional plants funded by the Hemas Power, which is a subsidiary of Hemas.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
Controversy over costs and revenue of IIFA
BOI funds transfer to Treasury, agreements being reviewed
Asiri Hospitals eyeing Bangladesh
e-Sri Lankans assist in building a unique global chip
Dankotuwa directors meet on Wednesday on liquidation issue
Motorcycle prices soon up by Rs. 6000
ODEL raises capital, expands
Economic lessons from Mahathir
Lessons from the Maldives
Sri Lanka's satellite: Lost in space?
Debating CEPA or destroying the debaters?
South Asia does well in post-financial crisis recovery
DCSL annual profit down 30%, quarterly profit down 49%
Sri Lanka among the safest places in the world - PM
Ampara farmers rejuvenated by rehabilitated irrigation canal
Lankan Minister predicts booming economy for Sri Lanka with north-east contribution
Kilinochchi businessmen limited credit due to lack of collateral
John Keells celebrates World Environment Day
DFCC Bank profits rise
Tax reduction will cause problems to the state
CEOs want HR to demonstrate high enthusiasm for the business
Mahathir Mohamad makes his mark in Sri Lanka
Dankotuwa eyes domestic market for future growth
Ceylon Guardian Group reports Rs.1.6 mln profit
CB's loans more than Rs 3 billion to the North
Sri Lanka Insurance launches door-to-door service
CILT enters the CCC umbrella
CMA panel discussion on “Sustainable Business”
Finlay’s Estates gets Rainforest Certification
CSE responds to SEC on LOLC's stockbroker licence
Drilling starts next year on 3 oil wells
Hemas will see FMCG, leisure and power sectors boost profits
CBSL appoints sovereign rating committee
Struggling real estate, property development to return as key investment avenues
NCE targets US$20 billion in exports by 2020
Full service virtual ad agency launched globally
LOLC profits up as cost of sales falls
ADB provides US$ 212.8 mln for North-East development
‘We believe, We achieve, We win’ - new theme for SLIM
Dialog TV partners Orange Electric for customer education drive
CMA Accounting Summit - Regional Heads meet in Colombo
Derivatives demystified


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution