In a surprise but welcome move to shareholders, Hemas Holdings PLC has announced a first interim dividend of Rs. 2.90 per share. The move entails a payout of Rs. 1.7 billion.
The first interim dividend for FY22 is also way higher than Rs. 1.85 per share dividend paid for FY21 (40 cents first interim and Rs. 1.45 final). Consistently rewarding shareholders, Hemas highest dividend had been Rs. 4.93 per share in FY19.
Hemas has 7,065 shareholders, of whom public is 7,050. In FY20, the numbers were 4,802 and 4,787, respectively, with public shareholding up by 2,263 or 47.3%.
Company sources said that the latest move was to reward shareholders on the back of improved performance in FY21 and so far in FY22. As at 30 June, Hemas had Rs. 9.2 billion in retained earnings at the company level and Rs. 21.5 billion at group level (up from Rs. 18.8 billion a year ago).
In 1Q of FY22, Hemas delivered yet another strong quarter amidst challenging operating environment conditions with key businesses gaining momentum in all areas. The group’s continued focus on growing the consumer and healthcare businesses along with operational excellence contributed to the resilient performance.
The group recorded a consolidated revenue of Rs. 16.4 billion for the quarter, an increase of 26.7% over last year. Hemas achieved a group operating profit of Rs. 1.1 billion, a growth of 77.5% over the last year same quarter, whilst the group earnings of Rs. 637.3 million is an increase of Rs. 367.9 million over the previous year. Group earnings excluding the remaining leisure assets stood at Rs. 720.4 million, a growth of 63.6% over last year.
In FY21, Hemas Group recorded revenue of Rs. 64.5 billion, a growth of 7.4% over the previous year. Operating profit of Rs. 6.1 billion and earnings of Rs. 3.3 billion were reported, reflecting a strong year-on-year growth of 71.6% and 163.3%, respectively. The group was able to deliver a resilient performance, through a continuous focus on working capital efficiencies, portfolio rationalisation and cost optimisation.
Cumulative underlying earnings of Rs. 3.8 billion reported for the financial year surpassed the results of both financial year 2019/20 and 2018/19, which is the most recent year of operations in a normal business landscape.
Last week Hemas divested its logistics arm for Rs. 1.27 billion as part of restructuring to focus on core sectors. It said the fully owned subsidiary Hemas Transportation Ltd. sold its 50% shareholding in Spectra Logistics Ltd. to GAC Logistics for Rs. 1.275 billion.
Hemas has previously said it was increasing focus on building and strengthening its market-leading position in consumer, healthcare and mobility sectors. In December last year, Hemas sold Serendib Hotels PLC for Rs. 793 million to Browns Investments PLC, and in March last year sold their travel and aviation assets for Rs. 201 million. Of the core verticals, mobility interests included integrated logistics, liner shipping agencies and the Emirates Airline agency.
(FT)