Sunshine Holdings’ 9mth 2019/20 profitability boosted by gain from divesting tea plantations

Diversified Sri Lankan conglomerate Sunshine Holdings, boosted by the divestment of its tea plantations, reported notable growth in bottom-line performances during the first nine months of the current financial year (9MFY20). During this period, the group recorded a consolidated revenue of Rs. 15.8 billion and also a 32.3 per cent Year-on-Year (YoY) increase in Profit After Tax (PAT).

The group’s top-line performance saw a decline in growth by 4.9 per cent YoY, mainly due to the sale of the tea plantation business represented by Hatton Plantations PLC during the first quarter as well as the revenue contraction of group’s consumer goods and energy sectors. The group’s healthcare business emerged as the largest contributor to Sunshine’s top- line performance, accounting for 50 per cent of total revenue, while consumer and agribusiness sectors of the group contributed 26 per cent and 19 per cent respectively of the total revenue, the company said in a media release.

Commenting about the group’s performance, Sunshine Holdings Group Managing Director, Vish Govindsamy stated, “The notable growth in our bottom line is attributable to the strong contributions from the healthcare arm and group’s execution of well- articulated strategies amidst tough market conditions that impacted all our business sectors. Due to the divestment of the group’s tea plantation business, our agribusiness sector experienced a decline in revenue growth while group’s consumer goods sector also saw a contraction in revenue due to market disruptions. However, it is noteworthy to mention that our healthcare sector is continuing its strong revenue growth momentum from last year.”