Strong sector performances propel Sunshine Holdings’ earnings by 44.2% to Rs.5.5bn
„Consolidated revenue of Rs.42.4bn, up 9.9%
Healthcare revenue up 19.3% YOY to Rs.21bn
Diversified Sri Lankan conglomerate Sunshine Holdings PLC recorded a consolidated revenue of Rs.42.4 billion during the first nine months of the current financial year.
Amidst the backdrop of moderately stable macroeconomic conditions, the group has reported top and bottom line growths of 10 percent and 44 percent year-onyear (YOY), with the profit after tax (PAT) increased to Rs.5.5 billion, as a result of business growth and lower finance costs during the period.
The group’s healthcare sector emerged as the largest contributor to Sunshine’s top line, accounting for 50 percent of total revenue, with consumer at 35 percent and agribusiness 15 percent of the total revenue.
Commenting on the performance, Sunshine Holdings Chairman Amal Cabraal said, “Sunshine Group remains steadfast with all key sectors delivering strong results. Our committed team’s resilience and executional prowess coupled with sound fiscal management, have effectively navigated the short-term stresses amidst the nation’s gradual recovery from the economic crisis. While the stringent policy measures aligned with the International Monetary Fund programme bring challenges, Sunshine Group remains confident in staying on course, continually enhancing its value proposition for all stakeholders and contributing positively to Sri Lanka’s economic revival.”
During the period in review, the group’s healthcare sector posted a revenue of Rs.21 billion, a significant increase of 19.3 percent YOY, backed by the increased top line of all business units under the sector.
The pharma segment revenue grew by 4.4 percent YOY and the medical devices segment grew by 40.8 percent YOY, driven by both price and volume increases. The revenue of the retail segment saw a 20.2 percent YOY increase, fuelled by an improved footfall of 19 percent compared to the previous year.
Lina Manufacturing, the pharma manufacturing business of the group, recorded an impressive revenue growth of 193.6 percent YOY, mainly driven by higher volumes in the Metered Dose Inhaler (MDI) plant. The group’s healthcare sector earnings before interest and taxes (EBIT) was Rs.3.4 billion.
The consumer sector, which includes both the brands and export businesses, reported a 14.8 percent YOY increase in revenue to close at Rs.9.7 billion in 9MFY24. The consumer brands business showcased impressive performance in 9MFY24, with the group’s brands continued to grow market shares.
The combined tea category experienced a volume growth of 10.1 percent YOY and a value growth of 58.8 percent YOY. The confectionery segment revenue declined by 20.9 percent YOY, despite an increase in the price, due to a volume contraction of 27.4 percent YOY.
The PAT from the consumer segment significantly increased by 111.6 percent YOY, due to the growth in the brand’s business. The export segment revenue declined by 28 percent YOY, due to the declining volumes and adverse macroeconomic conditions.
The agribusiness sector of the group, represented by Watawala Plantations PLC, reported a revenue of Rs.6.5 billion, down by 2.5 percent YOY. This was due to the decline in palm oil prices, due to the significant drop in demand. However, palm oil production increased by 16.7 percent YOY to 12.2 million kilogrammes in the current period, compared to 10.5 million kilogrammes in the same period last year.
The dairy business revenue grew by 30.2 percent YOY, due to the increases in both the sales volume and milk price. The PAT of the agri sector closed at Rs.2.2 billion for 9MFY24, down by 15.1 percent YOY.