In the nine months to December 31, 2009, group net profit fell 1.5 percent to 565 million rupees while sales fell 4.5 percent to 11.3 billion rupees

Hemas chief executive Husein Esufally said its main FMCG (fast moving consumer goods) business profits grew almost 30 percent to 474 million rupees in the nine month period from a year ago with revenues up 14.2 percent to four billion rupees.

“Industry growth remained flat over 2009 with rural demand helping to offset lower demand in the urban sector,” he said.

The group’s healthcare business represented by pharmaceuticals distribution and hospitals, posted a 22 percent rise in profit to 89 million rupees in the nine months with sales up 35 percent to 3.7 billion rupees.

Esufally said Hemas’ pharmaceuticals business now holds a 16.5 percent share of the private market.

Progress at the group’s hospitals in Wattala, a northern suburb of Colombo, and in southern Galle hospitals “has been quite satisfactory with customer franchise on an increasing trend,” Esufally said.

Esufally also said the group’s tourism business made a profit in the December quarter but was yet to return to profitability in the nine-month period.

“However, all our hotels are currently experiencing high occupancy rates with increased room rates, and this trend will promise healthy levels of profitability going forward.”

Hemas’ transportation business profits fell 19.8 percent for the nine months under review, mainly because of an overall contraction in the market size.

“However, we anticipate the industry to turnaround next year and hence a growth in earnings,” Esufally said.

The group’s power business profits fell 22.2 percent over the nine months, largely owing to the planned overhaul costs at its Heladhanavi thermal power plant.

“However, the quarter ending December 2009 has been a good one for the business with profits from renewable energy kicking in, leading to a 26.3 percent growth in profits,” Esufally said.

In December, Hemas bought Senok Mark Hydro, a 2.6MW hydro power plant for 196 million rupees.

“With the upsurge in tourist arrivals, the steady buildup of hospital volumes and the ongoing momentum of FMCG and pharma sales, we expect to end the year on a positive note,” Esufally said.