Diversified Sri Lankan conglomerate Sunshine Holdings PLC has recorded a consolidated group revenue of Rs. 55.5 billion for the financial year ended 31 March – a 7% Year-on-Year (YoY) growth. Profit After Tax (PAT) for the period in review increased by 66.4% to Rs. 6 billion.
Gross profit also increased by Rs. 3.7 billion, representing a 27.6% YoY growth, primarily driven by the margin expansion in both the healthcare and consumer segments. The gross profit margin for the period stood at 31%, marking an improvement of 500 basis points compared to the previous year.
The group’s financial performances were declared at a time when the International Finance Corporation (IFC) announced a proposed equity investment of up to Rs. 3.2 billion in its healthcare arm, Sunshine Healthcare Lanka (SHL). Subject to satisfaction of conditions, the IFC will own approximately 14.7% of SHL.
The group’s healthcare business emerged as the largest contributor to Sunshine’s revenue, accounting for 50% of the total, while the consumer goods and agribusiness sectors of the group contributed 34.8% and 15%, respectively, of the total group revenue. The group operating profit (EBIT) closed at Rs. 8.7 billion, an increase of 23.7% YoY. Additionally, the group’s finance cost for the period in review decreased to Rs. 1.2 billion from Rs. 1.5 billion in the previous year.
Sunshine Holdings Chairman Amal Cabraal said: “Despite the persistent economic challenges during FY24, the Sunshine Group has shown remarkable resilience and agility. All key sectors have delivered robust performances.”
Meanwhile, Sunshine Holdings Group Chief Executive Officer (CEO) Shyam Sathasivam stated: “Our achievement of crossing the Rs. 6 billion PAT mark for the first time in Sunshine Holdings’ history is a testament to the exceptional capabilities and dedication of our team.”
The healthcare sector recorded a revenue of Rs. 27.7 billion during FY24, an increase of 16.1% YoY backed by the improved performance in the medical devices and manufacturing segments. The pharma segment revenue remained flat while the medical devices segment grew by 28.1% YoY, driven by both price and volume increase. Revenue of Healthguard Pharmacy, the retail segment, saw a 19.2% YoY increase during the period in review.
Lina Manufacturing, the pharma manufacturing business of the group, recorded an impressive revenue growth of 137.4% YoY, driven by higher volumes in the Metered Dose Inhaler (MDI) plant. The group’s healthcare sector EBIT was Rs. 4.3 billion.
The consumer sector, which includes both export and domestic business, reported a 1.6% YoY revenue increase to Rs. 19.3 billion in FY24. Domestic consumer business showed impressive performance in FY24, with the group’s consumer brands continuing to grow market shares.
The combined tea category experienced a volume growth of 10% YoY and a value growth of 37.6% YoY. The confectionery segment revenue declined by 7.1% YoY, despite an increase in price, due to a volume contraction of 25.7% YoY. PAT from the consumer segment significantly increased by 118.5% YoY due to the growth in the domestic tea business and finance cost savings. The export segment revenue declined by 22.5% YoY due to lower tea prices and declining volumes in specific export markets.
The agribusiness sector of the group, represented by Watawala Plantations PLC, reported a revenue of Rs. 8.3 billion, down by 5.1% YoY. This was due to the decline in revenue of the palm oil business, down 9.3% YoY. However, palm oil production increased by 15.1% YoY to 15.7 million kg in the current period compared to 13.7 million kg in the same period last year.
The PAT of the agri sector closed at Rs. 2.4 billion for FY24, up by 2.9% YoY. Dairy business revenue grew by 29.7% YoY due to increases in both sales volume and milk price.