The Investor Sentiment - Equity and investments forum for Sri Lankans
Search
 
 

Display results as :
 


Rechercher Advanced Search

Latest topics
» My Port Folio Bleeding But Its just the Begining Of..
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyToday at 10:09 am by pathfinder

» අනං මනං! #/+?.<>
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyToday at 7:50 am by ruwan326

» Thread for News on CSE and SL Economy
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyToday at 7:06 am by ruwan326

» HASU.N0000 (HNB ASSURANCE PLC)
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyToday at 6:59 am by ruwan326

» Real Estate Market in Sri Lanka- A booming Industry or a Bubble?
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyToday at 6:43 am by ruwan326

» SAMP.N0000 (SAMPATH BANK PLC)
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyToday at 6:25 am by ruwan326

» RCL - Royal Ceramics
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyYesterday at 5:24 pm by The Invisible

» Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyYesterday at 3:58 pm by The Invisible

» Banks, Finance & Insurance Sector Chart
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyYesterday at 3:51 pm by The Invisible

» HNB Update
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyYesterday at 3:39 pm by The Invisible

» Cricket, meet Capitalism
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyYesterday at 12:26 pm by nuwanmja

» Dividend Announcement
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyFri Jul 19, 2019 9:32 pm by nihal123

» Browns Investments update
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyFri Jul 19, 2019 7:45 pm by The Invisible

» LOFC Initiating Coverage - STRONG BUY - 29 03 17 - FC Research
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyFri Jul 19, 2019 1:03 pm by Fireandwater

» "පියසේනට දැං සනීපයි..."
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyFri Jul 19, 2019 10:47 am by Yin-Yang

» What's going to happen
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyFri Jul 19, 2019 6:26 am by serene

» TJL.N0000 (Textured Jersey Lanka PLC.)
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyThu Jul 18, 2019 11:50 am by serene

» CFVF - First Capital
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyThu Jul 18, 2019 7:43 am by serene

» විද්‍යාව මිස්ගේ පාඩම...
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyWed Jul 17, 2019 7:27 am by sanjulanka

» Trading Journal
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyTue Jul 16, 2019 11:50 pm by pathfinder

» වචන නම් අපේ ඒත් තනුව ?????????
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyTue Jul 16, 2019 8:08 pm by Rana

» Access Engineering AEL Technical Analysis
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyMon Jul 15, 2019 3:07 pm by NIRMALSG

» Tourism sector
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptySun Jul 14, 2019 8:57 am by NIRMALSG

» LFIN - LB Finance
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyThu Jul 11, 2019 11:27 am by Ethical Trader

» අපි නොදන්න චෙස් කිව්වලු !
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyTue Jul 09, 2019 6:25 pm by serene

» Stock Market to stay Bullish
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyMon Jul 08, 2019 7:51 am by කිත්සිරි ද සිල්වා

» Is an emoji a word or a gesture?
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyMon Jul 08, 2019 7:46 am by කිත්සිරි ද සිල්වා

»  Rajgama Heroes !
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyMon Jul 08, 2019 7:39 am by කිත්සිරි ද සිල්වා

» HHL.N0000 ( Hemas Holdings PLC)
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptySun Jul 07, 2019 12:25 pm by dhanurrox

» Checkmate, meatbags !
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptySun Jul 07, 2019 7:20 am by spw19721

» GLAS.N0000 (PIRAMAL GLASS CEYLON PLC)
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptySat Jul 06, 2019 8:13 am by කිත්සිරි ද සිල්වා

» සංචාරක පැමිණීම ක්‍රමයෙන් යහපත් වන ලකුණු
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyFri Jul 05, 2019 6:11 pm by serene

» Easter Sunday Attack and Sri Lanka
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyThu Jul 04, 2019 8:46 am by කිත්සිරි ද සිල්වා

» First capital holdings
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyWed Jul 03, 2019 1:37 pm by serene

» What to Analyse
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyMon Jul 01, 2019 11:33 am by serene

» අනිසි ලෙස කොටස් මිල හැසිර වූ ආයෝජකයින් දෙදෙනෙකුට සුරැකුම්පත් කොමිසමෙන් නඩු
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyFri Jun 28, 2019 2:11 pm by Ethical Trader

» අද වෙන්දේසියේ දී බිල්පත් පොළිය පහළට.
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyFri Jun 28, 2019 7:46 am by serene

» AAIC.N0000
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyFri Jun 28, 2019 7:33 am by serene

» SERV - The Kingsbury
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyThu Jun 27, 2019 8:27 pm by ruwan326

» TPL.N0000 (TALAWAKALE PLANTATIONS )
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyWed Jun 26, 2019 2:22 pm by nuwanmja

» Life After Google
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyTue Jun 25, 2019 5:28 pm by කිත්සිරි ද සිල්වා

» S&P ශ්‍රී ලංකා 20 දර්ශකයේ වෙනසක්. CTC, NTB, රිචඩ් පීරිස් සහ ටෝක්යෝ සිමෙන්ති ඉවතට
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyTue Jun 25, 2019 6:37 am by nihal123

» Future of Tea Industry
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyMon Jun 24, 2019 6:54 pm by hammurabi

» Cricket !
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyMon Jun 24, 2019 2:22 pm by කිත්සිරි ද සිල්වා

» DIPD.N0000 (Dipped Products)
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyMon Jun 24, 2019 11:40 am by Ethical Trader

» DOCK.N0000 (COLOMBO DOCKYARD PLC)
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptySun Jun 23, 2019 9:14 pm by hammurabi

» මිල සූත්‍රය වැරදුණාද, වැරැද්දුවාද?
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyFri Jun 21, 2019 5:25 pm by Ethical Trader

» Happy Father's Day !
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyMon Jun 17, 2019 8:58 pm by spw19721

» DPL.N0000 (Dankotuwa Porcelain PLC)
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptySun Jun 16, 2019 7:12 am by NIRMALSG

» Re: Financial reports Q1-2019
Sri Lanka's Hemas Holdings profitability seen improving: Fitch EmptyFri Jun 14, 2019 8:57 pm by dhanurrox

July 2019
SunMonTueWedThuFriSat
 123456
78910111213
14151617181920
21222324252627
28293031   

Calendar Calendar

Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

Sri Lanka's Hemas Holdings profitability seen improving: Fitch

Go down

Sri Lanka's Hemas Holdings profitability seen improving: Fitch Empty Sri Lanka's Hemas Holdings profitability seen improving: Fitch

Post by The Invisible on Wed Aug 22, 2018 11:27 am

ECONOMYNEXT - Fitch Ratings says Sri Lanka's Hemas Holdings profitability is expected to improve after earnings fell 20 percent in the June 2018 quarter due to a temporary dip in sales at Atlas, a stationery company it acquired earlier this year.

"The weakness in diversified conglomerate Hemas Holdings PLC's (Hemas, AA-(lka)/Stable) first-quarter financial results is temporary, and is mainly due to the cash flow seasonality of its new school stationary business," Fitch Ratings in a statement Tuesday.

The group with interests in healthcare, consumer goods and logistics acquired Atlas, a statationery manufacturer and distributor, earlier this year for 5.6 billion rupees.



The agency expects Hemas' performance to improve during the remainder of fiscal year to end 31 March 2019.

The stationary business tends to see a significant pickup in demand towards the later part of the calendar year as students return to school after the holidays, it said.



"We have maintained our expectations that the company will achieve revenue growth of 21 percent and EBITDAR margin of 13% for the full year," the ratings agency said.

Profits fell 20.2 percent from a year earlier to 554.3 million rupees in the June 2018 quarter.

"The decline in earnings is due to reduced interest income post utilisation of cash reserves to acquire stationery company Atlas in January 2018 and increased interest costs relating to higher working capital due to strong growth in pharmaceutical distribution and the loan financing for our new logistics park," Chief Executive Steven Enderby told shareholders.

Earnings were 96 cents a share in the quarter, interim results filed with the Colombo Stock Exchange showed. The share last traded at 98.30 rupees.

Hemas was trading 4 rupees lower at 90 rupees on Tuesday.

Fitch Ratings' full statement:

The weakness in Sri Lanka-based diversified conglomerate Hemas Holdings PLC's (Hemas, AA-(lka)/Stable) first-quarter financial results is temporary, and is mainly due to the cash flow seasonality of its new school stationary business, Fitch Ratings says.

The agency expects Hemas' performance to improve during the remainder of fiscal year to end 31 March 2019 (FY19), and we have therefore maintained our expectations that the company will achieve revenue growth of 21% and EBITDAR margin of 13% for the full year.

Hemas acquired its school stationary business - Atlas Axillia (Private) Limited (Atlas) - in the last quarter of FY18. The stationary business tends to see a significant pickup in demand towards the later part of the calendar year as students return to school after the holidays.

Consequently Hemas' stationary segment was only able to break even on an operating profit basis in the quarter ended 30 June 2018, compared with Fitch's expectation that this segment will contribute around LKR1.2 billion to Hemas' FY19 EBIT, which is around 25% of the group's consolidated operating profit.

Operational challenges in Hemas' fast-moving consumer goods (FMCG) business in Bangladesh also played a part in the company's underperformance in 1QFY19, although we believe that earnings from this segment should also improve.

We expect the Bangladesh operation to benefit from Hemas' investments in the distribution network and product re-launches in the past few months. The segment's top line already reflects some of these benefits, rising 6% yoy in 1QFY19, compared with a 10% decline in FY18, when the performance was weighed down by issues with its distribution channels and intensifying competition.

As a result of the above, Hemas' EBITDAR margin fell by 140 bp to 10.2% in 1QFY19 from 11.6% in 1Q18, and compared with our FY19 forecast of 13%.

The company's lease-adjusted gross debt/ trailing 12 month-EBITDAR weakened to 2.0x at end-1QFY19, which is the upper limit for its 'AA-(lka)' National Long-term Rating, from 1.7x at FYE18, but we maintain our view that leverage will recover to 1.3x by FYE19.

The depreciation of the Sri Lankan rupee and regulated pricing in Hemas' pharmaceutical distribution business may threaten the group's profitability in FY19 unless industry stakeholders are able to negotiate a better cost pass-through mechanism with the regulator.

However, this could be partly offset by continued solid performance in the logistics and maritime segment and recovery in the hotel sector, in which occupancy levels and yields show signs of improving. (COLOMBO, 21 August 2018)
The Invisible
The Invisible

Posts : 905
Join date : 2016-11-28
Age : 39

Back to top Go down

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum