Hemas Holdings PLC (HHL) said it delivered a strong and resilient first nine months amidst a challenging operating environment with Group revenue up 20.5% to Rs. 57.7 billion and underlying cumulative operating profit (excluding all disposed entities) up 4.3% to Rs. 4.9 billion.

Hemas noted the latter was 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, up 7.2% from a year earlier.

 Pre-tax profit from continuing operations rose by 14.4% to Rs. 5 billion and after tax profit was up 45% to Rs. 2.4 billion. Bottom line was up 33% to Rs. 3.18 billion.

During the third quarter, Hemas Group revenue grew by 21.9% to Rs. 21.5 billion 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% and 2.4% respectively. 

The Group’s Healthcare businesses, in particular, contributed to the improved performance. In 3Q Hemas divested its interest in Spectra Logistics for Rs. 1.3 billion and the gain realised in the sale amounted to Rs. 295.3 million.

Hemas Holdings Group CEO Kasturi C. Wilson said against a challenging operating environment, she was encouraged by the progress made in the first nine months into the year.

“In the near-term, the operating environment will continue to remain challenging. In this scenario, we will manage our business with agility, and continue to grow our footprint whilst maintaining our focus in managing margins,” she said. “

The company remains confident of the medium to long term potential of the Consumer and Healthcare sector in Sri Lanka and Hemas’ ability to deliver a consistent growth.

 Further,it  continues to invest in uplifting digital capability within the organisation. Further, we strengthened the focus in continuing to expand our footprint beyond Sri Lanka, as we drive our internationalisation strategy,” the Hemas Group CEO added. 

The Consumer Brands sector recorded cumulative revenue of Rs. 22.5 billion, a growth of 17.0% over last year. However, sector cumulative earnings of Rs. 1.6 billion witnessed a year-on-year decline of 14.8% due to profitability pressure. 

During the quarter, the Consumer Brands sector registered a revenue of Rs. 9.7 billion, an increase of 22.2% compared with the corresponding quarter in FY 2021. 

 HPC Bangladesh witnessed double digit cumulative revenue and profitability growth due to improved market conditions in the first two months. 

Atlas Axillia continued to gain market share across all key categories including books, school and colour products over last year with double digit volume growth through premiumisation by way of design and technology. 

The  He;ath care Sector reported a cumulative revenue of Rs. 33.7 billion, a growth of 23.7% over last year whilst sector profit of Rs. 2.7 billion was a 21.2% growth over last year. 

The Sector posted a revenue of Rs. 11.5 billion whilst operating profit and earnings stood at Rs. 886.7 million and Rs. 651.5 million respectively for the quarter. 

The growth in profitability was primarily driven by the robust performance in Hospitals. However, profit margins continued to be impacted due to challenges around forex liquidity.

 Pharmaceutical businesses delivered a stable revenue growth year to date. Price controls on medicine coupled with scarcity in foreign exchange reserves have hampered medicine imports into the country. 

Hospitals witnessed an average increase in admission volumes by 10.6% over last year for the first nine months.

The third quarter of the year saw robust growth as the focus on non-COVID-19 patients was increased, especially Non Communicable Diseases (NCDs), which pose a substantial risk to the health of the people. Further, an outbreak of dengue was another contributor to the increased admissions during the quarter. 

Thalawathugoda and Wattala hospitals recorded an overall occupancy of 66.7% and 61.3% respectively for the quarter. 

Sri Lanka Customs has intensified its surveillance on increasing foreign currency smuggling amidst the countries worsening forex crisis, Customs Spokesman, Deputy Director Sudaththa Silva revealed.

Custom authorities are cracking down on individuals involved in currency smuggling and similar schemes; he said adding that this forex racket has become menace during the past few months.

At least 14 persons including some businessmen have been apprehended by the Narcotics Division of the Sri Lanka Customs during the past few months and legal action will be taken against them.

They have made a valiant attempt  to smuggle out  US dollars and other  foreign currency to the value of Rs 80 million to Dubai in past 18 days mainly to bring down gold in an organised racket , he disclosed.    

 Two persons were arrested on Tuesday 02 of this month at the Katunayake Bandaranaike International Airport for attempting to smuggle foreign currency worth over Rs. 11 million he disclosed.

The Customs officers arrested the two were arrested at the Bandaranaike International Airport this morning while leaving for Dubai and seized 46,000 Euros million from their possession.

Sri Lanka is currently facing one of the worst economic crises triggered by a severe foreign exchange shortage, he disclosed. 

Five Sri Lankans were arrested on Saturday (29) last month  by the Narcotics Division for trying to smuggle foreign currency consisted ofUS$ 95,000, 18,000 Euros and 37,000 Saudi Riyals out of the country to Dubai.

In another incident on January 20 2022, Customs arrested five more   suspects for the attempted smuggling of foreign currency worth Rs 42 million rupees to Dubai, UAE.

The currency consisted of $ 22,300, 63,500 Euros, 292,000 Saudi Riyals, 8,725 Sterling Pounds and 75,000 UAE Dirhams hidden inside luggage.

Sri Lanka Customs on  December (24) 2021 seized foreign currency, including US Dollars, Euros and Sterling Pounds, worth over Rs. 65 million from seven individuals at the Bandaranaike International Airport (BIA). 

A businessman had been taken to custody on November 23 when he attempted to smuggle foreign currency valued at over Rs. 14 Million to Dubai, from the Katunayake Airport.

Rs. 10 Million in Sri Lankan Currency and $25,000 was recovered from the hand luggage of the suspect.

The Criminal Investigation Department (CID) has informed the Colombo Chief Magistrates Court that they have commenced investigations against two businessmen for  their alleged involvement in smuggling out$ 1.2 million worth Rs.300 million under the guise of importing ready made garments and some other items via China, Hong Kong and Dubai by submitting invoices of foreign companies to local banks.

 But investigations revealed that the goods ordered by them had not been arrived in the country.   

Sri Lanka has partially reversed a hasty decision to experiment with green farming, but the country and its citizens are already paying for this bad mistake in the form of a food crisis triggered by man made agric crop disaster, agriculture experts claimed.    .

President Gotabaya Rajapaksa announced a plan in April 2021 ignoring scientific advice of phasing our organic initiative without rushing into it shifting inorganic farming with the aim of making Sri Lanka the first country in the world to ban inorganic fertilisers and crop-protection products that fight pests. 

But this week he changed his mind and directed officials to provide required stocks of feretliser to without mentioning the types of fertiliser and pesticides.
This directive is to supply fertliser and provide necessary directions to apply it in their farming will again create confusion among farmers, several grass root level agriculture activists said.
 The Government has decided to pay US $200 million  compensation for failed organic farm drive as a million farmers whose crops failed under a botched scheme to establish the world’s first 100-percent organic farming nation will be compensated.
The island nation is currently reeling from a severe economic crisis   that has triggered food shortages and rolling blackouts as the Covid-19  pandemic sent the tourism-dependent economy into a tailspin.

 Sri Lanka’s government, mainly run by seven members of the Rajapaksa family and their close allies wielding ruling power is rushing to avert the crisis made by them, economic experts alleged.
 Late last month, Sri Lanka’s plantation minister, Ramesh Pathirana, confirmed a partial reversal of the policy, telling the country’s Parliament that the government would be importing fertiliser necessary for tea, rubber and coconut, which make up the nation’s major agricultural exports..
Food costs are rising around the world as pandemic-related supply chain knots are slowly unsnarled and as prices rise for feed stocks like natural gas that are used to make fertiliser and other supplies. Sri Lanka added to those pressures with its own missteps.
Chemical fertilisers are essential tools for modern agriculture. Still, governments and environmental groups have grown increasingly concerned about their overuse. 
They have been blamed for growing water pollution problems, while scientists have found increased risks of colon, kidney and stomach cancer from excessive nitrate exposure.
Some farmers and agriculture industry officials say they are warming to the idea of reducing dependence on chemicals in farming. But the shift was too sudden for farmers who didn’t know how to work organically, said Nishan de Mel, director of Verité Research, a Colombo-based analysis firm.
Verité found in a July survey that three-quarters of Sri Lanka’s farmers relied heavily on chemical fertilisers, while just about 10 percent cultivated without them.
 Almost all major crops grown in the country depend on the chemicals. For crops crucial to the economy like rice, rubber and tea, the dependence reaches 90 percent or more.
The April ban went into effect just before what is known as the Yala planting season, which lasts from May to August, and was felt almost immediately. 

The Verité survey showed that 85 percent of farmers expected a reduction in their harvest because of the fertiliser ban. Half of them feared that their crop yield could fall by as much as 40 percent.
The fertiliser problem of the farming community has not been solved yet as the urban population is queuing up due to the shortage of essential commodities.
However, the Government already commenced purchasing paddy for the Maha season on 31st January.
Chairman of the Paddy Marketing Board, Neil de Alwis on Saturday (05) visited the Paddy Marketing Board’s warehouse complex in Samanthurai, Ampara to inspect the ongoing purchases.
Commenting to the media, the Chairman requested the farmers to extend their support to the Government by providing the required paddy for the purchases.

The Chairman of the Paddy Marketing Board stated hat the paddy purchasing program in Ampara proved to be successful, with approximately 1500 metric tons of paddy being purchased daily.
Speaking further, he pointed out that Nadu Samba and Kiri Samba, which are generally priced at Rs. 50, 52 or 55, have increased in price this time. 
According to him, currently, Nadu costs Rs. 90, Samba Rs. 92 and Kiri Samba Rs. 95. In addition, the farmer receives another 2 rupees for processing and transport at 2 rupees per kilo.
Further, he stated that the stocks of paddy can be brought to farmers’ organisations, warehouses, and farmers can even hand them over to agents. 
A mechanism has been implemented for the Paddy Marketing Board to visit the village and make purchases as well, he added.
 Farmers across Sri Lanka have intensified their protests due to the lack of fertiliser and being compelled to abandon their farmlands.
These farmers are demanding the government release fertiliser stocks for cultivation ahead of the upcoming harvesting season.