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Sunshine Holdings Group Managing Director Vish Govindasamy[/caption]
Sunshine Holdings (CSE: SUN) recorded resilient revenue and profit growth in a pandemic-affected macroeconomic environment, reporting notable top-line and bottom-line performance growth during the year ended 31 March 2021 (FY20/21). The Group’s healthcare and consumer sectors led growth, while the healthcare segment remained the major contributor to total group revenue in FY21.
Sunshine recorded a consolidated group revenue of Rs. 24.3 billion for the year ended 31 March 2021, an increase of 16.6% over last year. Profit after tax (PAT) for the period in review also increased to Rs. 2.5 billion, an increase of 38.5% YoY, and profit margins have also increased to 10.4% compared to last year’s 8.8%. These improved results stem from revenue growth, margin increases in key sectors, and strategic measures taken by the group to rationalise operating cost and lower finance expenses.
The group’s healthcare business emerged as the largest contributor to Sunshine’s revenue, accounting for 53% of the total, while consumer goods and agri business sectors of the group contributed 29% and 16%, respectively, of the total group revenue. The gross profit closed at Rs. 7.7 billion up 25.2% YoY compared to the previous year, backed by the contribution from the consumer goods and agribusiness sectors. The group earnings before interest and tax (EBIT) closed at Rs. 3.5 billion, an increase of 21.2% YoY.
Profit after tax and minority interest (PATMI) increased by 32.7% YoY to Rs. 1.5 billion; the healthcare sector made the largest contribution to PATMI, accounting for 37% of the total, while agribusiness accounted for 30% of the total. Net asset value per share increased to Rs. 23.48 as at end March 2021, compared to Rs. 18.75 at the end of March 2020.
For increasing exposure to its core sectors, which are defensive in nature, and maintaining a healthy balance sheet, Sunshine Group’s Fitch rating was upwardly revised to “AA+(lka)” with a Stable outlook from “A(lka)” in January 2021 (reaffirmed in March 2021).
Commenting on the performance, Sunshine Holdings Group Managing Director Vish Govindasamy said as a group, Sunshine has been facing challenges in some of their core sectors and will continue to do so in the short-to-medium term due to the negative economic impact due to the Covid-19 pandemic and subsequent lockdowns.
“However, the group’s robust cost management initiatives, process re-engineering efforts backed by digital technologies to ensure overall efficiency, and business continuity have helped Sunshine to outdo last year’s results and drive strong performance in FY21, where the group has been able to rebound from the adverse impacts brought by a tough macroeconomic business environment. We are proud that the group has remained resilient in the face of such difficulties, and we remain optimistic about consolidating our operations to strengthen the overall performance of the group further. All possible measures have been taken to ensure business sustainability and continuity in the coming months,” Govindasamy commented.
Sunshine Holdings Group Managing Director Vish Govindasamy[/caption]
Sunshine Holdings (CSE: SUN) recorded resilient revenue and profit growth in a pandemic-affected macroeconomic environment, reporting notable top-line and bottom-line performance growth during the year ended 31 March 2021 (FY20/21). The Group’s healthcare and consumer sectors led growth, while the healthcare segment remained the major contributor to total group revenue in FY21.
Sunshine recorded a consolidated group revenue of Rs. 24.3 billion for the year ended 31 March 2021, an increase of 16.6% over last year. Profit after tax (PAT) for the period in review also increased to Rs. 2.5 billion, an increase of 38.5% YoY, and profit margins have also increased to 10.4% compared to last year’s 8.8%. These improved results stem from revenue growth, margin increases in key sectors, and strategic measures taken by the group to rationalise operating cost and lower finance expenses.
The group’s healthcare business emerged as the largest contributor to Sunshine’s revenue, accounting for 53% of the total, while consumer goods and agri business sectors of the group contributed 29% and 16%, respectively, of the total group revenue. The gross profit closed at Rs. 7.7 billion up 25.2% YoY compared to the previous year, backed by the contribution from the consumer goods and agribusiness sectors. The group earnings before interest and tax (EBIT) closed at Rs. 3.5 billion, an increase of 21.2% YoY.
Profit after tax and minority interest (PATMI) increased by 32.7% YoY to Rs. 1.5 billion; the healthcare sector made the largest contribution to PATMI, accounting for 37% of the total, while agribusiness accounted for 30% of the total. Net asset value per share increased to Rs. 23.48 as at end March 2021, compared to Rs. 18.75 at the end of March 2020.
For increasing exposure to its core sectors, which are defensive in nature, and maintaining a healthy balance sheet, Sunshine Group’s Fitch rating was upwardly revised to “AA+(lka)” with a Stable outlook from “A(lka)” in January 2021 (reaffirmed in March 2021).
Commenting on the performance, Sunshine Holdings Group Managing Director Vish Govindasamy said as a group, Sunshine has been facing challenges in some of their core sectors and will continue to do so in the short-to-medium term due to the negative economic impact due to the Covid-19 pandemic and subsequent lockdowns.
“However, the group’s robust cost management initiatives, process re-engineering efforts backed by digital technologies to ensure overall efficiency, and business continuity have helped Sunshine to outdo last year’s results and drive strong performance in FY21, where the group has been able to rebound from the adverse impacts brought by a tough macroeconomic business environment. We are proud that the group has remained resilient in the face of such difficulties, and we remain optimistic about consolidating our operations to strengthen the overall performance of the group further. All possible measures have been taken to ensure business sustainability and continuity in the coming months,” Govindasamy commented.