Hemas Holdings Ltd. · CSELK:HHL.N0000
Hemas — Q1 FY23/24 Earnings Presentation
27 slides from Hemas's earnings presentation, 2023
Slide 1: Hemas Holdings PLC Investor Presentation Q1 FY23/24
Hemas Holdings PLC Investor Presentation- Q1 FY23/24
Slide 2: Who we are
Who we are Established in 1948 with a purpose of empowering families to live a better tomorrow, Hemas Holdings is one of Sri Lankan’s leading conglomerates listed in the Colombo Stock exchange with focused interest in Consumer and Healthcare. Key Milestones “Established Hemas Drugs Pvt 1948 Ltd” “IP
Slide 3: Implications of key macro economic parameters on Hemas
Implications of key macro economic parameters on Hemas Inflationary Pressure Appreciation of LKR Global Commodity prices “Change in consumer buying “ Favourable Impact of reduced prices “ Mixed impact due to the positive patterns with reduced disposable of key commodities was passed down impact from
Slide 4: Key strengths
BOM Group CEO Nomination & Governance Committee Human Related Party Resources & Transactions Board Remuneration Review Committee Committee Investment Group Audit Committee Committee Diversified and competent Presence in key defensive segments Leadership Team Healthcare and Consumer Sound Corporate G
Slide 5: Corporate Governance
Corporate Governance BOM Group CEO BOM (Board of Management) Nomination & Consists of the senior leadership team of 11 members - Heads of our 5 major businesses and 5 leaders from Governance Corporate Office. BOM is responsible for formulation and implementation of Group strategic plan and ensures C
Slide 6: Strategic Building Blocks
Strategic Building Blocks Building more from New within the core New business and Efficiencies the core and Adjacencies Internationalisation Accelerate current business Capturing new revenue Explore attractive Efficiency and productivity to efforts to drive higher value streams to further strengthen
Slide 7: New Product Launches during the Quarter
New Product Launches during the Quarter Home and Personal Care Sri Lanka Pharmaceutical Manufacturing Extensions to the ‘Velvet’ Hand Wash Range ‘Goya’ Limited Edition ‘Bisomor’ 2.5 mg and 5mg variants Additions to the ‘Velvet cutie’ portfolio
Slide 8: Financial Snapshot
Financial Snapshot EBIT By Segment (LKR million) 3,004 211 2,153 3M contribution to the Group 2,031 225 38% 1% 1,092 434 2,171 61% 615 1,147 10% 704 51% Revenue 242 53% 43 217 1,153 1,090 930 EBIT 835 647 (48) (260) (28) (202) (308) (308) Consumer Healthcare Mobility Healthcare Consumer Mobility Oth
Slide 9: Sector Performance Summary – Q1 FY 2023-24
Sector Performance Summary – Q1 FY 2023-24 Revenue Walk EBIT Walk (LKR Mn) (LKR Mn) 1,963 29,121 1 -26 2,342 442 -48 -63 24,841 -209 2,153 2,031 Q1 FY 23 Consumer Healthcare Other Mobility Q1 FY 24 Q1 FY 23 Consumer Other Healthcare Mobility Q1 FY 24
Slide 10: Continuing Operation EPS – Q1 FY 2023-24
Continuing Operation EPS – Q1 FY 2023-24 EPS Walk (LKR Per Share) 0.18 -1.06 0.20 0.70 -0.12 0.70 -0.16 -0.40 1.83 1.81 1.81 1.83 Q1 FY 23 Income Tax Operating NCI Net Finance Q1 FY 24 Q1 FY 23 Consumer Other Mobility Healthcare Q1 FY 24 Profit Cost
Slide 11: Capital Employed – Q1 FY 2023-24
Capital Employed – Q1 FY 2023-24 Sector Efficiency Capital Employed, ROCE, and EBIT by Sector 50% Mobility LKR 224.5 Mn Consumer Healthcare 41.3% 40% LKR 1,146.6 Mn LKR 1,090.0 Mn 37.1% 30% Group ROCE :23.6% ROCE (%) 20% 17.5% 10% -2.9% 0% Capital Employed (LKR Bn) 0 5 10 15 20 25 30 35 40 45 Other
Slide 12: Consumer Brands
Consumer Brands Home and personal care - Sri-Lanka Consumer Brands - International Learning Segment
Slide 13: Consumer Brands
Consumer Brands Contribution to Group Sector Performance – Q1 FY 2023-24 38% Key Highlights Revenue % Revenue (LKR Mn) 26.9% • Despite the market witnessing price Q1 FY24 (YoY) 35% reductions due to reduced commodity Q1 FY23 15,135 prices, consumers continued to curtail 15,000 13,628 consumption and
Slide 14: Home and Personal Care – Sri Lanka
Home and Personal Care – Sri Lanka 8 Key categories with market Purpose-driven brands touching the lives of the Sri Lankan consumer leading positions Extensions to the ‘Velvet’ Portfolio Inclusive Strong roots Parenting Stronger Make a Celebrating Enabling Both parents together Positive Difference &
Slide 15: Home and Personal Care – International
Home and Personal Care – International Reach in Bangladesh 2 Geographies Locally led and localised in Bangladesh Bangladesh & West Bengal • All products are exclusively designed for Rural penetration by Bangladesh. 19.3% Hemas 2 Key categories • Extensive product portfolio with multiple value VAHO a
Slide 16: Home and Personal Care – Sri Lanka and International
Home and Personal Care – Sri Lanka and International Sri Lanka International Revenue (LKR Mn) 18.7% Revenue Revenue (YoY) • Despite the rising macroeconomic challenges, HPC • Price reductions were made across the Bangladesh arm witnessed volume-led growth 8,830 8,606 portfolio in line with reduced g
Slide 17: Learning Segment
Learning Segment Revenue 6 Key categories • Q-o-Q decline in revenue is due to the seasonal nature of the business. • Amidst improved operating conditions the Revenue (LKR Mn) market witnessed heavy competition from value-for-money brands imposing pressure on High Efficiency and market share. 7,000
Slide 18: Healthcare Sector
Healthcare Sector Pharmaceutical Import, Marketing and Distribution Pharmaceutical Manufacturing Hospitals
Slide 19: Healthcare
Healthcare Contribution to Group Sector Performance – Q1 FY 2023-24 Revenue % 61% Revenue (LKR Mn) 12.5% Key Highlights (YoY) Q1 FY24 • The healthcare system continues to Q1 FY23 18,000 17,639 grapple with challenges, including 63% 16,523 16,712 16,000 15,675 15,757 shortages of essential drugs and
Slide 20: Pharmaceutical Import, Marketing, Distribution and Pharmaceutical Manufacturing
Pharmaceutical Import, Marketing, Distribution and Pharmaceutical Manufacturing Revenue • Pharmaceutical Distribution Arm of the Group prioritised the availability of Revenue (LKR Mn) essential medication in the market over profitability. 11.1 % • Morison expanded its Branded Generics portfolio with
Slide 21: Hospitals
Hospitals • Revenue Revenue increased under high occupancy at 170+ Beds both the hospitals under improved medical admissions. Revenue (LKR Mn) • Many key anchor specialties including Urology 25.3.% and Gastro-Enterology witnessed significant (YoY) growth in value and volume terms. 2,000 1,912 62% Ho
Slide 22: Mobility Sector
Mobility Sector Maritime Aviation
Slide 23: Mobility
Mobility Contribution to Group Sector Performance – Q1 FY 2023-24 1% Revenue % Revenue (LKR Mn) Key Highlights -5.9% Q1 FY24 2% (YoY) Q1 FY23 500 444 469 384 418 • Port of Colombo witnessed a 11.5 % 345 and 7.8 % growth in transshipment and total throughput volumes during the quarter, partially attr
Slide 24: Environmental and Social Impact
Environmental and Social Impact TACKLING MARINE POLLUTION PROVIDING WIGS TO CANCER PATIENTS CREATING EQUAL LEARNING OPPURTUNITY 78,000+ 400+ 7,000+ Plastic Collected Women Children, Teachers and Parents CREATING QUALITY EDUCATION EXPERIENCE SUPPORTING VULNERABLE COMMUNITIES AND BUILDING A SOCIAL SEC
Slide 25: Sustainability Performance Q1 2023-24 vs Q1 2022-23
Sustainability Performance Q1 2023-24 vs Q1 2022-23 Values of Fines for Non-Compliance Carbon Footprint (per Rs. Mn Revenue) 13.3% 0.13MT with Laws and Regulations in the NONE Social Economic Area Water Consumption 1.5 Total Work-Related Injury Rate 0.2 (per Rs. Mn Revenue) 11.8% m3 (per 100 employe
Slide 26: Focus Areas
Focus Areas Grow Market Share Develop value creating products to cater to the evolving needs of the customers Expanding the export footprint with high focus in Bangladesh Develop a strong Sri Lankan private brand of generics under Morison Establish presence in new international markets Acquisitions/
Slide 27: Disclaimer / Thank You
Disclaimer The material in this presentation has been prepared by Hemas Holdings PLC (“Hemas”) and is general background information about Hemas’ activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information in this