Sunshine Holdings reports 14.1% YoY top-line growth in 1QFY24.

Healthcare, Consumer, and Agribusiness sectors thrive amidst challenges

  • Consolidated revenue of Rs.13.4 billion
  • Healthcare revenue up 8.2% YoY to Rs.6.3 billion
  • Consumer revenue up 20.9% YoY to Rs.4.7 billion
  • Agribusiness revenue increased by 27.3% YoY to Rs.2.4 billion

Diversified Sri Lankan conglomerate Sunshine Holdings PLC
(CSE: SUN) continued to demonstrate resilience amidst prevailing macro-
economic conditions, reporting a top-line growth of 14% YoY. The Group
recorded a consolidated revenue of Rs.13.4 billion during the first quarter of the
current financial year (1QFY24) with Profit after tax (PAT) contracted by 10.6%
YoY to Rs.1.4 billion as a result of, 32.4% YoY increase in admin and S&D
expenses, and a 93.5% YoY increase in finance costs during the period. The
revenue increase was mainly due to robust revenue growth in key sectors of the
Group —Healthcare, Consumer and Agribusiness.
The Group’s Healthcare sector emerged as the largest contributor to Sunshine’s
top-line, accounting for 47.2% of total revenue, with Consumer at 35.1%, and
Agribusiness 17.6% of the total revenue.
Commenting on the performance, Sunshine Holdings PLC Chairman Amal
Cabraal said, “Despite the headwinds, Sunshine Holdings has demonstrated
remarkable strength, achieving a commendable top-line growth in the first
quarter of FY24. Our robust performance reflects the unwavering commitment
and dedication of our team, coupled with strategic focus in key sectors of
Healthcare, Consumer, and Agribusiness. As we navigate through the prevailing
economic uncertainties, our ability to adapt and thrive stands as a testament to
the agility and resilience embedded within our organization. Despite challenges,

we remain steadfast in our pursuit of sustainable growth and value creation for
our stakeholders.”
During the period in review, Group’s Healthcare sector posted revenue of Rs.6.3
billion during the first quarter, a modest increase of 8.2% YoY backed by the
increased top-line of both manufacturing and medical devices businesses. Lina
Manufacturing, the Pharma manufacturing business of the Group, recorded an
impressive revenue growth of 362.1% YoY, mainly driven by higher volumes in
the Metered Dose Inhaler (MDI) plant. Group’s Healthcare sector EBIT was
Rs.936 million.
The consumer sector reported a 20.9% YoY increase in revenue to close at
Rs. 4.7 billion in 1QFY24 and accounted for 35.1% of Group revenue for the
period. Consumer local business showcased strong performance in 1QFY24
with Group’s consumer brands continued to grow market shares. Combined
Tea category experienced a volume de-growth of 10.7% YoY in 1QFY24
mainly driven by the 26.1% volume contraction of the export business. Local
volume of the tea category grew by 4.4% YoY during the period. Value
growth for the Combined Tea segment was recorded as 25.0% YoY.
Revenue of Confectionery segment grew by 7.4% YoY despite a volume
contraction of 16.8% YoY.
The Agribusiness sector of the Group, represented by Watawala Plantations
PLC (CSE: WATA), reported a revenue of Rs. 2.4 billion. The revenue growth
was driven by the increase in palm oil volumes despite the dip in prices in line
with the drop in global commodity prices. The PAT of the Agri sector closed at
Rs.751 million for 1QFY23, up by 2.3%. YoY Dairy business revenue grew by
53.2% YoY due to increases in both sales volume and milk price.
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. 52 billion in FY23.
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

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