Consolidated revenue of Rs. 24.9 billion
PAT increased by 28.2% YoY to Rs. 3.2 billion
Healthcare revenue up 35.9% YoY to Rs. 11.6 billion
Acquisition led growth in Consumer, revenue up 128.4% to Rs. 8.6 billion
Agri revenue up 34.4% YoY to Rs. 4.6 billion
November 14, 2022: Recording another quarter of sound financial performance in a
challenging economic backdrop, diversified conglomerate Sunshine Holdings (CSE:
SUN) posted consolidated revenue of Rs. 24.9 billion for the six months ending 30
September 2022 (1HFY23), an increase of 57.7% YoY compared to the corresponding
period of last year.
Profit after tax (PAT) for the period in review rose to Rs. 3.2 billion, an increase of
28.2% YoY, on the back of the profit arising from the improved performance in
Healthcare, Consumer Goods and Agribusiness. The gross profit improved by Rs. 1.9
billion, up 36.3% YoY compared to the previous year, in line with the Group’s revenue
growth. Gross profit margin for the period in review stood at 29.4%, which is a
contraction of 463 basis points against the same period last year. Profits attributable to
equity shareholders (PATMI) closed at Rs. 1.9 billion for 1HFY23, an increase of 60.0%
YoY.
The Group’s Healthcare business emerged as the largest contributor to Sunshine’s top-
line performance, accounting for 46.6% of total revenue. In comparison, Consumer and
Agribusiness sectors of the Group contributed 34.4% and 18.4% respectively of the total
revenue. In April 2022, Sunshine Tea (Pvt) Ltd, which is a tea export business, was
acquired by the Group and its performance is consolidated under Consumer Goods
sector w.e.f. 1 st April 2022.
Commenting on the performance, Sunshine Holdings Chairman Amal Cabraal said “The
Group faced multiple challenges across all sectors from the fall out of the
macroeconomic issues faced by the country. However, incisive sales initiatives, robust
cost management and process reengineering backed by numerous digital initiatives
enabled Sunshine to record a healthy performance in 1HFY23. The resilience and
adaptability displayed by all the sector and center teams in delivering these results are a
matter of pride and confidence. Whilst the continuing economic challenges and
shrinking real disposable income will be barriers to overcome, the Group remains
optimistic that the initiatives in place will enable the delivery of sound results in the
forthcoming periods.”
Healthcare
Press Release
Group’s Healthcare segment generated Rs. 11.6 billion in turnover during 1HFY23,
representing a significant growth of 35.9% YoY on the back of improved performance in
Pharmaceutical and Medical Devices segments. Lina, the Pharma manufacturing
business, experienced revenue growth mainly due to price revisions together with the
revenue earned from Metered Dose Inhaler (MDI) sales to the government. The first
MDI sale was made in the month of July 2022 marking the commencement of
commercial operations in Lina Spiro. The Healthcare sector PAT increased by 51.7%
YoY.
Consumer Goods
Recording a 128.4% increase in revenue compared to the corresponding period of last
year, the Consumer Goods Sector recorded a revenue close to Rs. 8.6 billion. Export
business accounts for 46.9% of the sector’s revenue. Excluding the new addition of
Sunshine Tea, revenue growth stood at 21.3%. The PAT of the sector increased by Rs.
383 million compared to the same period last year.
Agribusiness
The Group’s agribusiness sector, represented by Watawala Plantations PLC (WATA)
and Watawala Dairy Limited (WDL), saw a revenue increase of 34.4% YoY to Rs. 4.6
billion. The EBIT margin contracted due to reduction in crop volumes YoY and
increased cost of bought crop. PAT of the Agri sector closed at Rs. 1.9 billion for
1HFY23, up by Rs. 45 million compared to the same period last year. About Sunshine
Holdings
Sunshine Holdings PLC is a diversified conglomerate contributing to ‘nation-building’ by
creating value in vital sectors of the Sri Lankan economy – healthcare, consumer goods
and agribusiness. Established in 1967, the group is now home to leading Sri Lankan
brands such as Zesta Tea, Watawala Tea, Ran Kahata, Daintee Confectionary and
Healthguard Pharmacy, with over 2,300 employees and revenue of Rs. 32 billion in
FY22. The business units comprise of Sunshine Healthcare Lanka, Sunshine Consumer
Lanka and Watawala Plantations PLC, which are leaders in their respective sectors and
many of them certified as a “Great Place to Work” in 2021.