Sunshine Holdings records 54% top-line growth in 1Q with acquisitions in Healthcare & Consumer

Diversified Sri Lankan conglomerate Sunshine Holdings PLC (CSE: SUN) continued to demonstrate resilience amidst prevailing macro-economic conditions after reporting an impressive top-line growth of 54% YoY. The Group recorded consolidated revenue of Rs. 7.3 billion during the first quarter of the current financial year (1QFY22) and Profit after tax (PAT) grew 88% to Rs. 1 billion. The revenue increase was mainly due to impressive performances in key sectors and acquisitions in both Healthcare and Consumer over the last financial year.

The Group’s Healthcare sector emerged as the largest contributor to Sunshine’s top-line performance, accounting for 54% of total revenue, with Consumer at 25%, and Agribusiness 19% of the total revenue.

Commenting on the performance, Sunshine Group Managing Director Vish Govindasamy said, “The ongoing pandemic continues to impact every sector in the economy. For businesses in Sri Lanka, it is a test of their resilience and readiness to macro-economic challenges posed by COVID-19. However, as a Group, we are pleased to note that we displayed a resilient and entrepreneurial spirit in such difficulties, continuing our valuable contribution to the economy by ensuring undisrupted services to all our stakeholders by maintaining the highest safety standards and convenience. However, we will continue to face challenges in the short to medium term due to the negative economic impact caused by the pandemic and uncertainties in the macro environment.”

Healthcare

During the period in review, Group’s Healthcare sector posted revenue of Rs 4 billion during the first quarter, a significant increase of 54% YoY backed by improved performance of Sunshine Pharmaceuticals, Sunshine Medical Devices  and Healthguard Pharmacy. These business divisions results together with the contribution from the Akbar Pharmaceutical companies and Lina, the local pharmaceutical manufacturing division, resulted in the Group’s Healthcare sector PAT increasing by 58% YoY. Sunshine Healthcare Lanka was recognized as one of the Top 40 Best Workplaces in Sri Lanka by the Great Place to Work institute for the year 2021 to 2022.

Consumer

Spearheaded by brands like ‘Zesta’, ‘Watawala Tea’, ‘Ran Kahata’ and ‘Daintee’, the Consumer Goods sector reported a 68% YoY increase in revenue to close at Rs.1.8 billion. The revenue increase is mainly due to the contribution from the confectionary business segment acquired during last year. Improved performance in both tea and confectionary sub-sectors contributed to the top-line growth.

Agribusiness

The Agribusiness sector of the Group, represented by Watawala Plantations PLC (WATA), saw a revenue increase of 44% during the first quarter compared to the same period last year. PAT of the Agri sector closed at Rs. 724 million for Q1 FY 21/22, up by Rs. 318 million compared to the same period last year, while PAT of the Dairy segment increased to Rs.18 million compared to a net loss of Rs. 4 million during the same period last year.