J.L. Morison Son & Jones (Ceylon) PLC, now a member of the Hemas group celebrating its 75th anniversary, has boosted both net earnings and operating profits in the year ended March 31, 2014 according to the company’s recently released annual report.
Describing the year under review as "successful and eventful", the company’s new Chairman, Mr. Husein N. Esufally reported that Hemas had acquired Morisons in May last year. Following this acquisition the company has posted a revenue of Rs.2.6 billion, an operating profit of Rs.258.2 million and net earnings of Rs.210.8 million for the year ended March 31, 2014.
"These numbers reflect an impressive 51% growth in net earnings and 34% growth in operating profits in spite of a 13% drop in revenue," Esufally said.
"While the drop in revenue is attributable to the loss of two consumer agencies, your company has done well to more than compensate for this loss through strategic initiatives undertaken during the year.
He explained that pharmaceutical manufacturing, import and distribution forms the core of the current J.L. Morisons operation. These activities had performed extremely well to post 20% revenue growth despite sluggish industry growth which stood at 1.32% for 2013.
The company’s Managing Director said that reduction in revenue was attributable to the company winding up their homecare distribution channel which distributed the Good Knight and Kiwi brands.
"In spite of the decline in revenue, the significant improvement in operating profit and net earnings was mainly attributable to the growth in manufacture, import and distribution of pharmaceuticals despite lackluster industry growth as well as other efficiency measures undertaken during the year," he said.
M.S.J. Industries, the pharmaceutical manufacturing arm, succeeded in significantly increasing supplies to government hospitals through the "Buy Back" agreement offered to local manufacturers by the government in order to stimulate the local manufacture of pharmaceuticals. M.S.J. Industries also commenced a project to upgrade GMP (Good Manufacturing Practice) standards at the manufacturing facility located in Colombo 15 in September 2013.
He expected these upgrades should increase their production capacity which would increase their production capacity to be completed by December 2014.
They had rationalized their portfolio further by discontinuing non core products focusing on key products and brands under the J.L. Morion umbrella. This initiative had yielded results in terms of improved sales of over the counter products and pharmaceuticals and also realized working capital significantly improving cash flows.
Morisons has a stated capital of Rs.7.9 million, reserves of Rs.1.47 billion and retained earnings of Rs.653.1 million in its books. Total assets ran at Rs.2.63 billion and total liabilities at Rs.504.4 million.
Hemas Manufacturing (Pvt) Limited with 90.04% of the voting shares is the dominant shareholder. Hemas also owns 84.84% of the non-voting shares.
The directors of the company are: Messrs. H.N. Esufally (Chairman), R.A.J.T. Perera (MD/CEO), A.S. Abeyewardene, Prof. P.R. Fernando and S. Enderby.
www.island.lk
Describing the year under review as "successful and eventful", the company’s new Chairman, Mr. Husein N. Esufally reported that Hemas had acquired Morisons in May last year. Following this acquisition the company has posted a revenue of Rs.2.6 billion, an operating profit of Rs.258.2 million and net earnings of Rs.210.8 million for the year ended March 31, 2014.
"These numbers reflect an impressive 51% growth in net earnings and 34% growth in operating profits in spite of a 13% drop in revenue," Esufally said.
"While the drop in revenue is attributable to the loss of two consumer agencies, your company has done well to more than compensate for this loss through strategic initiatives undertaken during the year.
He explained that pharmaceutical manufacturing, import and distribution forms the core of the current J.L. Morisons operation. These activities had performed extremely well to post 20% revenue growth despite sluggish industry growth which stood at 1.32% for 2013.
The company’s Managing Director said that reduction in revenue was attributable to the company winding up their homecare distribution channel which distributed the Good Knight and Kiwi brands.
"In spite of the decline in revenue, the significant improvement in operating profit and net earnings was mainly attributable to the growth in manufacture, import and distribution of pharmaceuticals despite lackluster industry growth as well as other efficiency measures undertaken during the year," he said.
M.S.J. Industries, the pharmaceutical manufacturing arm, succeeded in significantly increasing supplies to government hospitals through the "Buy Back" agreement offered to local manufacturers by the government in order to stimulate the local manufacture of pharmaceuticals. M.S.J. Industries also commenced a project to upgrade GMP (Good Manufacturing Practice) standards at the manufacturing facility located in Colombo 15 in September 2013.
He expected these upgrades should increase their production capacity which would increase their production capacity to be completed by December 2014.
They had rationalized their portfolio further by discontinuing non core products focusing on key products and brands under the J.L. Morion umbrella. This initiative had yielded results in terms of improved sales of over the counter products and pharmaceuticals and also realized working capital significantly improving cash flows.
Morisons has a stated capital of Rs.7.9 million, reserves of Rs.1.47 billion and retained earnings of Rs.653.1 million in its books. Total assets ran at Rs.2.63 billion and total liabilities at Rs.504.4 million.
Hemas Manufacturing (Pvt) Limited with 90.04% of the voting shares is the dominant shareholder. Hemas also owns 84.84% of the non-voting shares.
The directors of the company are: Messrs. H.N. Esufally (Chairman), R.A.J.T. Perera (MD/CEO), A.S. Abeyewardene, Prof. P.R. Fernando and S. Enderby.
www.island.lk
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