Strong 2Q boosts Hemas Group 1H earnings by 32.5% to Rs. 3.3 b

Enters into a Conditional Share Sale and Purchase Agreement to acquire leading consumer products company based in Kenya

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HEMAS Holdings PLC's consolidated earnings in 2Q of FY26 rose by 36.6% to Rs. 2.1 billion compared to the corresponding quarter of the previous year, driven by robust revenue growth across all its business sectors.

This growth in revenue, together with sustained operating margins, contributed to a 13% increase in operating profit which grew to Rs. 3.5 billion. Further, net interest cost decreased by 78.9% during the quarter benefitting from reduced interest rates and lower borrowings.

Revenue for the first half of the year increased to Rs. 60.8 billion, while operating profit stood at Rs. 5.6 billion, reflecting a growth of 11.8% and 10.7% respectively, leading to cumulative earnings for the first half reaching Rs. 3.3 billion, an increase of 32.5%. Hemas also announced a 25-cent first interim dividend for FY26.

During the quarter, the Group announced two landmark investments that underscore the Group's strategic agenda. Pursuing the Group's international expansion strategy, Hemas entered into a Conditional Share Sale and Purchase Agreement to acquire a leading consumer products company based in Kenya.

In line with its long-term vision to evolve from a strong secondary care provider into one of Sri Lanka's leading tertiary healthcare institutions, Hemas Hospitals commenced the expansion of its Thalawathugoda facility dur ing the quarter. This strategic investment will increase bed capacity and introduce specialised services in cardiology, neurology and nephrology:

Hemas Holdings Group CEO Ashish Chandra said the acquisition in Kenya announced during the quarter, is expected to be completed by the end of the current financial year, conditional upon obtaining regulatory approvals from both the Central Bank of Sri Lanka and the Competition Authority of Kenya, together with the completion of other conditions precedent.