Sunshine Holdings records 8% top line growth in 1QFY19

Diversified Sri Lankan conglomerate Sunshine Holdings PLC SUN) has reported top line growth of 8.0% YoY to Rs.5.6 billion during the first quarter of the current financial year (1QFY19).

The increase was mainly due to strong performances in consumer and healthcare sectors, and despite a slight degrowth within the agribusiness sector, the company said in a media release. Profit after tax (PAT) for the period in review fell by 38.8 per cent to Rs. 343 million and profit margins have also reduced to 6.2 per cent compared to last year mainly due to lower profitability in the agribusiness sector and holding company’s higher finance cost. Profit after Tax and Minority Interest (PATMI) fell by 21.6 per cent YoY to Rs. 192 million with the agribusiness sector, making the largest contribution to PATMI, accounting for 50 per cent of the total. The group’s healthcare sector emerged as the largest contributor to Sunshine’s top-line performance.

Recently, Sunshine announced a private placement to raise Rs. 775 million with SBI Ven Holdings (Pte) Ltd, the overseas private equity firm of Japan’s financial giant SBI Holdings Inc. Through this private placement, Sunshine Holdings plans to reduce its net debt and net finance cost.

The group’s Healthcare sector posted revenue growth of 15.6 per cent YoY on the back of volume increase in the pharma sub sector and foot-fall growth in retail, represented by its rapidly-growing Healthguard Pharmacy chain, growing 13.5 per cent YoY.

“In Healthcare, we expect strong growth momentum in volumes to continue into 2QF19. The healthcare industry is expecting another phase of price control by the regulator during 2QFY19. Although this was announced by the Minister of Health on 1 August 2018, no guidelines have been issued by the regulator on the same,” said Group Managing Director Vish Govindasamy.