The Hemas Group has recorded a consolidated revenue of Rs. 7.3 bn, a growth of 20%. Group operating profit closed at Rs. 452 mn while earnings stood at Rs. 247 mn, a decline of 12%, Group CEO Steven Enderby said.

The variance between top line growth and decline in earnings is explained by sharp variations in performance of the different sectors within the Group,he said.

The FMCG sector performed well during the first quarter registering a revenue of Rs. 2.9 bn, a strong growth in comparison to last year. All categories contributed positively. Our Bangladesh operation recorded significant growth on account of the higher sales generated from our hair care segment. The multiple re-launches that took place during 2013/14 financial year have started to deliver results and operating profits have grown in line with sales. The Healthcare sector registered a revenue of Rs. 3.0 bn, a growth of 9% driven by the strong performance of our hospitals.

The Pharmaceuticals business faced weak market conditions during the quarter in review impacting sales and resulting in low growth. In these difficult trading conditions we retained our industry leadership position with a market share of 21.05% . The Hospitals business performed well with overall revenue growing by 42% over last year.

The revenue growth was driven by the notable performance of our Wattala Hospital along with the improving performance of Thalawathugoda Hospital, which completed its first year in operations during the quarter under review.

"Our newest addition, J. L. Morison experienced an 8% drop in sales due to production being disrupted by a machine breakdown, which resulted in the closure of the manufacturing plant for several weeks. The plant is now back in its full production and we used this period to upgrade the factory. On a positive note, the distributed pharmaceuticals segment showed growth against the previous year's turnover.

The Leisure sector posted a revenue of Rs. 515 mn, a growth of 34% over the last year. Revenue growth was driven by the Hotels business which recorded a topline of Rs. 287 mn, a growth of 78%. However, last year's numbers were impacted by the partial closure of Club Hotel Dolphin and Hotel Sigiriya for refurbishment during the corresponding period. Hotels enjoyed a healthy occupancy rate of 70%, a significant improvement over the last year.